Hainan Local Financial Regulatory Bureau: Beware of the chaos caused by "pseudo token exchanges," and reiterate that RWA tokenization activities are prohibited within the country.

ChainCatcher news, according to Hainan Daily, the Hainan Provincial Local Financial Supervision Administration has issued a risk warning regarding trading venues. Recently, the Hainan Provincial Local Financial Supervision Administration learned from relevant channels that certain entities are promoting themselves under names such as “Hainan International Data Asset Exchange,” “Hainan Data Exchange,” and “Hainan Marine Exchange,” claiming they can legally conduct business related to RWA (Real World Assets) and RDA (Real Data Assets).

Market participants are conducting business in violation of regulations under the guise of trading venues without approval, which is suspected of illegal financial activities and endangers public property safety. In response, the Hainan Provincial Local Financial Supervision Administration has provided the following risk warnings:

1. Currently, there is no approved establishment of a “Hainan International Data Asset Exchange” within our province. The establishment of trading venues in our province requires approval from the provincial government (the list of approved trading venues can be found in the attached table). Without approval from the competent authorities, market operators are prohibited from using terms like “exchange” or “trading center” in their registered names and from engaging in related business activities of trading venues.

2. The People’s Bank of China, the China Securities Regulatory Commission, and eight other departments jointly issued a notice on “Further Preventing and Handling Risks Related to Virtual Currency,” clearly stating that the regulation of tokenization of Real World Assets (RWA) will follow the principle of “strictly prohibited domestically, strictly regulated abroad.” It emphasizes that engaging in tokenization activities of Real World Assets (RWA) within the country, as well as providing related intermediary and information technology services, is suspected of illegal activities such as unauthorized issuance of token vouchers, unauthorized public issuance of securities, illegal operation of securities and futures business, and illegal fundraising, which should be prohibited.

3. Investors are urged to establish a correct investment concept.