Hainan Provincial Local Financial Regulatory Authority: Beware of “Fake Exchanges”; Reiterates Ban on RWA Tokenization Activities Within Mainland China
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Hainan Provincial Local Financial Regulatory Authority: Beware of “Fake Exchanges”; Reiterates Ban on RWA Tokenization Activities Within Mainland China
According to Hainan Daily, the Hainan Provincial Local Financial Regulatory Administration has issued a risk alert regarding trading venues. Recently, the Administration learned through relevant channels that certain entities have been promoting themselves under names such as “Hainan International Data Asset Exchange,” “Hainan Data Exchange,” and “Hainan Exchange,” claiming to conduct compliant business involving Real-World Assets (RWA) and Real-Data Assets (RDA). However, market entities operating such activities under the guise of a trading venue without prior approval are engaging in unlawful financial operations, which constitute suspected illegal financial activities and jeopardize the public’s property security. In light of this, the Hainan Provincial Local Financial Regulatory Administration hereby issues the following risk alerts: 1. Currently, no “Hainan International Data Asset Exchange” has been approved for establishment within Hainan Province. The establishment of any trading venue in our province requires explicit approval from the provincial government (a list of trading venues approved for establishment is provided in the attached table). Without authorization from competent authorities, market operators may not include terms such as “Exchange” or “Trading Center” in their registered names, nor may they engage in any business activities related to trading venues. 2. The People’s Bank of China, the China Securities Regulatory Commission (CSRC), and six other departments jointly issued the “Notice on Further Preventing and Addressing Risks Related to Virtual Currencies and Other Matters,” which explicitly stipulates a regulatory principle of “strict prohibition domestically, stringent oversight overseas” concerning tokenization of real-world assets (RWA). It further emphasizes that conducting RWA tokenization activities within China—or providing intermediary services, information technology support, or related services thereto—constitutes suspected illegal issuance of tokens or vouchers, unauthorized public offerings of securities, illegal operation of securities or futures businesses, or illegal fundraising, all of which constitute illegal financial activities and must be prohibited. 3. All investors are urged to cultivate sound investment concepts.
Navigating Web3 tides with focused insightsTechFlow News, March 24: According to Hainan Daily, the Hainan Provincial Local Financial Regulatory Authority has issued a risk alert regarding trading venues. Recently, the Authority learned through relevant channels that certain entities are promoting themselves under names such as “Hainan International Data Asset Exchange,” “Hainan Data Exchange,” and “Hainan Exchange,” claiming to conduct compliant business involving Real-World Assets (RWA) and Real-Data Assets (RDA). However, market entities operating such activities under the guise of trading venues without prior approval constitute unlawful financial operations and jeopardize public property security.
In light of this, the Hainan Provincial Local Financial Regulatory Authority issues the following risk alerts:
First, no entity named “Hainan International Data Asset Exchange” has been approved for establishment within our province. The establishment of any trading venue in Hainan requires explicit approval from the provincial government (a list of approved trading venues is provided in the appendix). Without authorization from competent authorities, market operators may not include terms such as “Exchange” or “Trading Center” in their registered names nor engage in any business activities associated with trading venues.
Second, eight departments—including the People’s Bank of China and the China Securities Regulatory Commission—jointly issued the “Notice on Further Preventing and Addressing Risks Related to Virtual Currencies and Other Matters,” which explicitly stipulates a regulatory principle of “strict prohibition domestically, stringent oversight overseas” for tokenization of real-world assets (RWA). It emphasizes that conducting RWA tokenization activities within China’s territory—or providing related intermediary or information technology services—constitutes illegal issuance of tokens or vouchers, unauthorized public securities offerings, illegal operation of securities or futures businesses, or illegal fundraising, all of which qualify as unlawful financial activities and must be prohibited.
Third, investors are urged to cultivate sound investment concepts, enhance risk awareness, select legitimate investment channels, firmly resist unlawful and noncompliant financial activities, and safeguard their lawful rights and interests. Should relevant leads be discovered, please promptly report them to local regulatory authorities; if criminal activity is suspected, immediately file a report with public security organs.
