The Hainan Local Financial Supervision Bureau of China Issues Risk Warning on Illegal RWA Transactions

**Hainan Regulator Alerts to Illegal RWA Trading; PBOC-Led Notice Bans Domestic RWA Tokenization** On March 24, Hainan Province’s local financial supervision bureau released a March 19 risk alert targeting illegal Real World Asset (RWA) transactions. Recently, some entities have promoted themselves under names like “Hainan International Data Asset Exchange,” “Hainan Data Exchange,” and “Hainan Sea Exchange,” claiming to legally offer RWA and Real Data Asset (RDA) services. These unapproved entities are operating as trading venues in violation of regulations, suspected of illegal financial activities that threaten public property security. The “Hainan International Data Asset Exchange” has not been approved in Hainan. Provincial government approval is required to establish a trading venue in the province; entities without authorization may not use terms like “exchange” or “trading center” in their names or conduct trading venue-related business. Separately, the People’s Bank of China (PBOC), China Securities Regulatory Commission (CSRC), and eight other departments jointly issued a notice on virtual currency risk prevention. It states RWA tokenization follows the principle: *“strict prohibition domestically, strict regulation overseas.”* Engaging in domestic RWA tokenization—including providing intermediary, tech, or other related services—suspected of illegal token sales, unauthorized securities issuance, illegal securities/futures operations, or illegal fundraising is prohibited.