Caixin: Hong Kong is one of the overseas issuance jurisdictions for RWAs; China International Capital Corporation (CICC) Hong Kong has engaged with public blockchains and exchanges to explore potential collaborations.
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Caixin: Hong Kong is one of the overseas issuance jurisdictions for RWAs; China International Capital Corporation (CICC) Hong Kong has engaged with public blockchains and exchanges to explore potential collaborations.
Caixin published an article titled “Strict Oversight of Offshore RWAs,” which points out that “strict oversight of offshore activities” is the overarching tone of Circular No. 42, “Notice on Further Preventing and Addressing Risks Related to Virtual Assets and Other Matters.” Hong Kong is one of the offshore jurisdictions for RWA issuance. According to regulatory insiders familiar with the matter, RWAs backed by assets located in China’s Hong Kong Special Administrative Region fall outside the regulatory scope of Circular No. 42 and are not under the purview of mainland regulators. Currently, there are no RWAs issued offshore—e.g., in Hong Kong—that are backed by underlying assets such as domestic securities or funds. Should any such RWAs emerge, they would fall under the jurisdiction of the Institutional Department of the China Securities Regulatory Commission (CSRC). Moreover, “previously, all such activities were outright prohibited. Now, while it is no longer stated that ‘all are prohibited,’ strict regulation applies to RWAs involving the outbound transfer of domestic assets. This does not imply ‘encouragement’—it must absolutely not be interpreted as ‘promoting development,’ nor as ‘rushing ahead aggressively.’ Rather, the stance is unequivocally ‘strict regulation.’” According to information obtained by Caixin, over the weekend when Circular No. 42 was released, China International Capital Corporation (CICC) Hong Kong already had teams engaging with major public blockchains and exchanges to explore potential business cooperation opportunities. Additionally, certain public blockchain executives expressed their desire to collaborate with investment banks and other intermediaries to explore business opportunities. Both Ant Group and JD.com have indicated they are closely monitoring policy developments.
Navigating Web3 tides with focused insightsTechFlow News reports that on February 21, Caixin published an article titled “Strict Oversight of Offshore RWAs,” stating that “strict oversight of offshore activities” is the overarching principle set forth in Circular No. 42, “Notice on Further Preventing and Addressing Risks Related to Virtual Assets and Other Matters.” Hong Kong is one of the offshore jurisdictions for RWA issuance. According to regulatory insiders familiar with the matter, RWAs backed by assets located in China’s Hong Kong Special Administrative Region fall outside the scope of regulation under Circular No. 42 and are not subject to supervision by mainland regulators. Currently, there are no RWAs issued offshore—e.g., in Hong Kong—whose underlying assets consist of mainland-issued securities or funds. Should such RWAs emerge, they would fall under the jurisdiction of the Institutional Department of the China Securities Regulatory Commission (CSRC). Furthermore, “previously, all such activities were outright prohibited. Now, while it is not stated that ‘all are prohibited,’ strict regulation applies to RWAs involving the outbound transfer of mainland-based assets. This does not imply ‘encouragement’—it must absolutely not be interpreted as ‘promoting development’ or ‘ramping up activity rapidly.’ Rather, the guiding principle remains ‘strict regulation.’”
According to additional information obtained by Caixin, over the weekend when Circular No. 42 was released, China International Capital Corporation (CICC) Hong Kong already had teams engaging with major public blockchains and exchanges to explore potential business collaboration opportunities. Some public blockchain executives have also expressed their desire to partner with investment banks and other intermediaries to jointly explore business opportunities. Both Ant Group and JD.com have indicated they are closely monitoring the policy developments.
