Hainan Regulator Issues Alert Over Unlicensed RWA Trading and "Exchange" Branding

ChainCatcher reported that on March 19 the Hainan Provincial Financial Regulatory Bureau released a risk alert targeting suspected illegal trading activities involving RWA. The bureau said some organizations have recently promoted themselves using names such as "Hainan International Data Asset Exchange," "Hainan Data Exchange," and "Hainan Securities Exchange," claiming they can lawfully conduct RWA (real-world assets) and RDA (real data assets) business. According to the regulator, market participants that carry out such activities without approval, using an "exchange" label as a cover, may be involved in illegal financial activities that threaten the safety of public property. The bureau noted that no entity named "Hainan International Data Asset Exchange" has been approved to be established in Hainan. Any exchange set up within the province must obtain provincial government approval. The bureau also warned that market entities must not include terms such as "exchange" or "trading center" in their registered names, and are not permitted to engage in exchange-related business without authorization from relevant authorities. It added that eight departments, including the People's Bank of China and the China Securities Regulatory Commission, have jointly issued the "Further Notice on Preventing and Handling Risks Related to Virtual Currencies." The notice sets out a supervisory stance for RWA tokenization described as "strictly prohibiting domestically and strictly regulating overseas." It states that conducting RWA tokenization activities in China, or providing related intermediary or information technology services, is suspected of illegal conduct such as unauthorized token or securities issuance, unauthorized public offerings of securities, illegal operation of securities and futures businesses, and illegal fundraising, and must be prohibited.