Caixin: RWAs Based on Assets in Hong Kong Not Attributable to Mainland Chinese Regulatory Authorities

February 21 Caixin reported in an article titled *Strict Regulation of Overseas RWAs* that on February 6, the People’s Bank of China (PBOC) and eight other departments issued **Notice No. 42**—a circular focused on further preventing and addressing virtual currency risks, with an overarching theme of “strict overseas regulation.” Sources familiar with Chinese regulators told Caixin: - RWAs backed by Hong Kong assets are not covered by Notice No. 42 and do not fall under the purview of domestic Chinese regulators. - If RWAs are issued overseas using domestic securities or funds as underlying assets, relevant departments of the China Securities Regulatory Commission (CSRC) will oversee them. The statement clarifies that strict regulation applies to domestic assets used for overseas RWA issuance—this should not be interpreted as a signal of regulatory encouragement or relaxation. Additionally, sources noted that over the weekend after Notice No. 42’s release, a team from CICC Hong Kong contacted major public blockchains and exchanges to discuss business cooperation. Some public blockchain leaders expressed interest in partnering with investment banks and intermediaries to explore opportunities. Ant Group and JD.com have both indicated they are closely monitoring the policy changes.