Core Viewpoint - The People's Bank of China and other regulatory bodies have issued a notice to strictly regulate the tokenization of real-world assets (RWA), prohibiting domestic activities while allowing for stringent oversight of overseas operations [1][2]. Group 1: Definition and Regulation of RWA Tokenization - RWA tokenization refers to the process of converting ownership and income rights of assets into tokens using cryptographic technology and distributed ledger systems [1]. - The notice emphasizes a strict prohibition on domestic RWA tokenization activities and related services, categorizing them as illegal financial activities unless specifically approved by regulatory authorities [1][2]. Group 2: Restrictions on Financial Institutions and Services - Domestic financial institutions and intermediaries are prohibited from providing services for unauthorized RWA tokenization activities and related financial products [2]. - Internet companies are also barred from offering platforms or marketing services for RWA tokenization [2]. Group 3: Risk Management and Compliance - Overseas subsidiaries of domestic financial institutions must exercise caution and adhere to risk management protocols when providing RWA tokenization services abroad [2]. - Intermediaries and technology service providers involved in RWA tokenization must comply with legal regulations and report their activities to relevant authorities [2]. Group 4: Risks Associated with RWA Tokenization - RWA tokenization carries multiple risks, including false asset risks, operational failure risks, and speculative trading risks [2]. - The notice aims to combat illegal financial activities associated with RWA tokenization, with strict penalties for violations [2]. Group 5: Cross-Border Regulatory Measures - The notice aligns with the need for stringent cross-border regulation to mitigate financial risks and maintain stability in China's financial system [3]. - The China Securities Regulatory Commission has issued guidelines for the issuance of asset-backed security tokens overseas, requiring domestic enterprises to file with the commission before proceeding [3].