Hainan Local Financial Supervision Bureau: Be wary of the chaos of "pseudo-digital exchanges" and reiterate the ban on RWA tokenization business in China

According to Hainan Daily, the Hainan Province Local Financial Administration Bureau issued a risk warning on trading venues. Recently, the Hainan Province Local Financial Administration Bureau learned from relevant channels that relevant entities are promoting in the names of "Hainan International Data Asset Exchange","Hainan Digital Exchange" and "Hainan Sea Exchange", claiming that they can carry out RWA real world assets, RDA real data assets and other businesses in compliance. Market entities conduct business in violation of regulations in the name of trading venues without approval, suspected of illegal financial activities and infringing on the safety of public property. In this regard, the Local Financial Administration Bureau of Hainan Province warned the following on relevant risks: 1. Currently, the establishment of "Hainan International Data Asset Exchange" has not been approved within the jurisdiction of our province. The establishment of trading venues in our province must be approved by the provincial government (see the attached table for the list of approved trading venues). Without the approval of the competent department, market operating entities are not allowed to use the words "exchange" and "trading center" in their registered names, and are not allowed to carry out business activities related to trading venues. 2. Eight departments including the People's Bank of China and China Securities Regulatory Commission jointly issued the "Notice on Further Preventing and Disposing Related Risks such as Virtual Currency", which clarified that the supervision of real-world asset (RWA) tokenization should be implemented with the principle of "strictly prohibited at home and strictly controlled abroad", and emphasized that carrying out real-world asset (RWA) tokenization activities in China, as well as providing relevant intermediaries and information technology services, are suspected of illegally selling tokens and coupons. Public issuance of securities without authorization, Illegal financial activities such as illegal securities and futures business and illegal fund-raising should be prohibited. 3. Investors are invited to establish correct investment concepts.