Document No. 42 Sets Strict Tone on Overseas RWAs

Document No. 42 imposes a strict regulatory posture on overseas RWAs, as the CICC Hong Kong team explores partnerships with major public blockchains and exchanges.

Rich by Coin

2026-02-21

Document No. 42 on strengthening risk prevention and management of virtual asset activities has set a strict regulatory tone for overseas RWAs. Over the weekend, the Hong Kong team of CICC reportedly engaged with major public blockchains and exchanges to explore potential partnerships. Some leaders in the public blockchain space have signaled interest in pursuing opportunities with investment banks and other intermediaries.

Ant Group and JD.com have expressed notable concerns about the policy shift. People familiar with the matter say Hong Kong-based assets used as the basis for RWAs are outside the scope of Rule 42 and fall outside the jurisdiction of domestic regulators.

There are currently no RWAs backed by domestic securities or funds located in Hong Kong or other offshore regions. If such RWAs exist, they would fall under the CSRC’s Institutional Investors Department. Although the language of a total ban is no longer used, strict controls on exporting domestic assets overseas as RWAs remain, and this should not be interpreted as encouragement or rapid expansion but as a firm regulatory stance.