Shanxi Warns Against Illegal RWA Financial Schemes

Shanxi Provincial Office has issued a warning against illegal financial activities related to Real World Assets (RWA) and stablecoins within the region.

The event signals increased regulatory vigilance in China, indicating that participation in RWA-based or stablecoin-driven schemes remains illegal and subject to scrutiny.

The warning from the Shanxi Provincial Office emphasizes the risks of investing in RWA projects, underscoring a history of official skepticism towards digital assets. This alert primarily aims to educate and prevent potential fraudulent activities involving RWA and stablecoins without naming specific entities.

The focus is on investments promoted within Shanxi, urging caution against schemes involving stablecoins like USDT and USDC. Previous similar warnings have been issued, and a past crypto fraud incident in Shaanxi in July 2025 underscores the persistent threat despite China’s crypto ban.

“Families must complete the lawful outbound steps before considering tokenisation. Externalise first, tokenise later. In Hong Kong, RWA tokens are regulated financial products…” – Fung Yu, Senior Partner, Fung Yu & Co.

This preventive action targets public awareness rather than responding to any discovered misuse, avoiding specific case references or incidents. Such advisories continue to highlight the inherent risks of digital asset involvement under existing regulations and prohibitions in China.

Potential long-term outcomes might include stricter enforcement and increased scrutiny on crypto investments mimicking traditional asset structures. Similar initiatives may arise, impacting investor perspectives and regulatory approaches in the cryptocurrency sector.