Hainan Province Local Financial Management Bureau Issues Risk Warning on Illegal RWA Trading

Techub News: On March 19, the Hainan Provincial Financial Supervision Bureau issued a risk warning regarding illegal RWA trading. Recently, some entities have been promoting themselves under the names of “Hainan International Data Asset Exchange,” “Hainan Data Exchange,” and “Hainan Hai Exchange,” claiming to conduct compliant RWA real-world asset and RDA real data asset businesses. Market participants are engaging in activities without approval, using the name of trading venues in violation of regulations, suspected of illegal financial activities, and endangering public property safety. Currently, the establishment of “Hainan International Data Asset Exchange” has not been approved within Hainan Province. Setting up trading venues within the province requires approval from the provincial government. Without approval from the relevant authorities, market operators are not permitted to use terms such as “Exchange” or “Trading Center” in their registered names or to carry out activities related to trading venues. Furthermore, the People’s Bank of China, the China Securities Regulatory Commission, and six other departments jointly issued the “Notice on Further Preventing and Managing Risks Related to Virtual Currencies,” which clearly adopts the principle of “strict prohibition domestically and strict regulation abroad” regarding RWA tokenization. It emphasizes that conducting RWA tokenization activities within the country, as well as providing intermediary, information technology, and related services, suspected of illegal issuance of tokens or securities, unauthorized public offering of securities, illegal operation of securities and futures businesses, illegal fundraising, and other illegal financial activities, should be prohibited.