China Clarifies RWA Regulatory Division: Offshore Debt Under NDRC, Equity and Asset Securitization Under CSRC

Regulatory Framework Clarified, RWA Enters Standardized Development Phase

A recent Caixin report highlights that China has further clarified the regulatory framework for Real World Assets tokenization (RWA) issued overseas, officially bringing it out of the regulatory gray area.

Category-Based Regulation Aligned with Risk Profiles

Under the new guidelines, offshore debt-linked RWAs are placed under the supervision of the National Development and Reform Commission (NDRC), while equity and asset securitization-linked RWAs are regulated by the China Securities Regulatory Commission (CSRC).

Unified Principles for Regulatory Consistency

Authorities stress that RWA regulation must follow the principle of 'same business, same risk, same rules,' ensuring parity with traditional financing methods to prevent regulatory arbitrage.

Foreign Exchange Control and Cross-Border Capital Oversight

Similar to traditional offshore financing, RWAs involve cross-border capital flows, meaning that the return of funds raised offshore to the domestic market will be monitored by the State Administration of Foreign Exchange (SAFE).

Other RWA Types to Be Jointly Supervised

For RWAs that fall outside these defined categories, oversight will be shared among CSRC and other relevant authorities, ensuring risk containment and market stability.