The China Securities Regulatory Commission (CSRC) has recommended that some securities firms suspend their RWA business in Hong Kong.

On September 22, sources familiar with the matter revealed that the China Securities Regulatory Commission (CSRC) recently issued a recommendation to some domestic securities firms, requesting them to temporarily suspend their real-world asset (RWA) tokenization business in Hong Kong.

The news indicates that at least two leading domestic securities firms have received informal guidance from the CSRC in recent weeks, requiring them to proceed cautiously with RWA tokenization business overseas, particularly in the Hong Kong market, and to avoid hastily launching related products or services.

This guidance is part of the regulator's efforts to strengthen risk management of emerging businesses.

It aims to guide institutions to establish comprehensive risk control systems before launching innovative businesses and ensure that the business details they disclose have sufficient legal basis and solid business support.

This move is also seen as an important measure by regulators to further regulate the overseas operations of financial institutions and prevent potential financial risks amid the rapid development of fintech and cross-border business, reflecting the regulatory orientation of seeking a balance between innovation and prudence.