Director of Shanghai Financial and Development Laboratory: Regulatory authorities are treating RWA tokens and virtual currencies differently for the first time and do not require absolute decentralization.

Deep Tide TechFlow News, February 22, Caixin published an article titled “Strict Regulation of Offshore RWA,” in which Shangai Financial and Development Laboratory Director and Chief Expert Zeng Gang stated that the joint issuance of Document No. 42 by eight departments adopts a regulatory framework of “prohibition within the country and strict control offshore,” marking the first time RWA tokens are distinguished from virtual currencies. The China Securities Regulatory Commission (CSRC) considers “asset-backed security tokens” as the first operational RWA type, opening a specific pathway for domestic enterprises to legally issue abroad. The regulatory authorities neither deny the potential value of RWA tokens as a new financing tool nor relax risk prevention. Document No. 42 emphasizes the use of “encryption technology and distributed ledger or similar technology,” and does not mandate absolute decentralization. The core principle is: offshore issuance must ensure that domestic entities do not engage in token trading throughout the entire process, and funds entering the country must go through compliant cross-border investment and foreign exchange management channels. Additionally, an event reporting mechanism must be established post-issuance to ensure that major matters are promptly reported to the China Securities Regulatory Commission.