Two Chinese property developers are discovering that slapping a blockchain label on distressed real estate doesn’t magically make investors forget about credit risk. Their attempts to raise capital through tokenized real-world asset offerings have stalled, caught between weak financial profiles and a regulatory environment that’s growing more restrictive by the month.
China’s regulatory clampdown on tokenization
On February 8, 2026, Chinese authorities including the People’s Bank of China issued guidance that explicitly criminalized unauthorized onshore RWA tokenization activities. The notice didn’t shut the door entirely, but it made the doorway extremely narrow, requiring approvals through designated channels and adherence to CSRC guidelines for any offshore tokenization involving domestic assets.
The February guidance also established a negative list of assets ineligible for tokenization, with oversight from multiple authorities watching the process.
Back in December 2025, seven Chinese industry associations issued joint warnings about the risks lurking in RWA tokenization. Their concerns included fake assets, business failures, and speculative trading.
