Jiangsu CSRC Warns RWA Tokenization Fundraising in China Is Illegal

The Jiangsu CSRC has classified all financing activities under the name of RWA (Real-World Asset Tokenization) in China as illegal financial activities and urged investors to exercise caution. On August 8, the agency issued a risk warning stating that some institutions and individuals are using the RWA concept to attract public investment through terms like 'real asset collateral,' 'principal protection with high returns,' and 'low-risk stable value appreciation.' The warning highlighted potential criminal activities such as illegal fundraising, fraud, and money laundering. The Jiangsu CSRC explained that RWA involves converting real-world assets like bonds, commodities, real estate, credit, and intellectual property into tradable digital tokens on-chain using blockchain technology. It advised those encountering suspicious cases to preserve evidence and report to relevant authorities or the police.