China financial association declares RWA tokenization illegal

The China Financial Industry Association has issued a statement defining the tokenization of real-world assets (RWA) as an illegal financial activity, Wu Blockchain reported. The association stated that RWA tokenization involves unlicensed fundraising and trading and has not received approval from regulatory authorities. It also warned that such activities risk constituting illegal fundraising or securities issuance. The group emphasized that supporting domestic or overseas RWA projects could lead to legal liability.