China has banned the onshore tokenisation of real-world assets such as real estate, art, bonds, and gold. Analysts say this crackdown aims to stop financial scams and prevent money from leaving the country illegally. Tokenisation turns these assets into digital tokens that represent ownership and make trading easier. Liu Xiaochun, vice-president of the China Academy of Financial Research, said, “First, there are too many scammers nowadays. Second, there are also numerous cases of capital outflow being conducted using either RWAs or crypto assets. That’s why a ban is necessary.” The ban also blocks any Chinese or foreign entities from issuing yuan-pegged offshore stablecoins without government approval. Stablecoins are cryptocurrencies linked to stable currencies like the US dollar. Despite the ban, China wants to keep room for controlled fintech growth, especially in markets like Hong Kong. This balance aims to protect financial security and monetary control while encouraging innovation.