China may permit RWA projects while effectively banning stablecoins, analysts say

As Chinese regulators announce an expanded crackdown on cryptocurrencies to include stablecoins and asset tokenization, analysts believe yuan-pegged stablecoins are unlikely to be approved for trading in the country. According to DL News, these analysts view the move as an enforcement of existing policies, making it improbable that domestic tech firms will secure stablecoin licenses. However, the rules contain an exception clause for "government approval" regarding real-world asset (RWA) projects. This has led to divided opinions on whether Beijing will permit a select few RWA companies to operate within Hong Kong's regulatory sandbox. An anonymous source noted that this is the first time Chinese regulators have mentioned RWA, adding that the detailed guidance provides a clear direction for pilot and sandbox projects, which the source described as a positive sign.