Key Highlights:
- An unidentified People’s Bank of China (PBOC) official affirmed that overseas entities are prohibited from offering real-world asset (RWA) tokenization services to mainland domestic entities, calling such activities illegal.
- The regulatory clarification follows the Solana Foundation opening a commercial presence in Shanghai, an event that featured light-show promotions on the Citibank tower in Lujiazui.
- Chinese authorities and the PBOC directly intervened to suspend the Solana Accelerate event on October 16, initiating an investigation into the organizations and individuals tied to the event.
PBOC Reaffirms Mainland Ban on RWA Tokenization and Crypto Services
The People’s Bank of China (PBOC) has reiterated its strict regulatory posture against digital asset activities, clarifying mainland restrictions following recent high-profile crypto engagements. An unidentified PBOC official stated that these operations were barred on the mainland and classified as illicit under a framework published earlier in the year. Specifically, the official referenced a joint circular issued by the central bank alongside eight other government agencies: Overseas entities and individuals may not, in any form, illegally provide RWA-tokenization-related services to domestic entities,
the notice stated.
The firm stance addresses growing speculation surrounding the Solana Foundation’s recent presence in the country. The foundation surprised observers across the global digital assets ecosystem by establishing a commercial office in Shanghai—a development that struck market participants as unexpected given Beijing’s longstanding nationwide bans on cryptocurrency trading and operations. To mark the footprint, promotional branding featuring Solana’s colors was displayed across the curtain wall of the Citibank tower in Lujiazui.
Solana’s Shanghai Expansion and Immediate Regulatory Backlash
The foundation’s foray into mainland China quickly drew attention from prominent figures in the digital asset space. Binance co-founder Changpeng “CZ” Zhao reacted to the development with optimism regarding potential market access. It’s amazing to see that Solana was able to advertise and even get an office in China,
he said, echoing sentiments among industry observers who viewed the launch as a potential softening of regulatory policy.
However, the apparent opening was short-lived. On October 16, the local Solana Accelerate conference was abruptly halted. While the event focused deliberately on enterprise verticals such as robotics, artificial intelligence (AI), physical AI, emerging markets, and localized business development while avoiding crypto speculation, it quickly attracted regulatory enforcement. Although Lily Liu, president of the Solana Foundation, originally attributed the stoppage to overcrowding—stating the venue exceeded the headcount registered with authorities and noting the event was halted to better accommodate the breadth and scale of our community,
subsequent details revealed law enforcement presence on site.
Reports have confirmed that the shutdown involved direct PBOC participation, triggering pending administrative investigations targeting the specific entities and personnel connected to the event.
PBOC Signals Broad Crackdown on Intermediaries
Looking ahead, Chinese central bankers have signaled no retreat from their prohibitive stance. The unnamed official emphasized that the central bank will work with relevant departments and local governments, focusing on domestic virtual currency dealers and domestic related entities of overseas virtual currency issuance and trading platforms, to continue to crack down on domestic virtual currency-related business activities and maintain economic and financial order.
Why This Matters
The PBOC’s intervention serves as a definitive signal to global Web3 organizations attempting to access mainland Chinese markets through ancillary tech branding such as real-world assets (RWA) and enterprise AI. Despite brief optimism from prominent figures like Changpeng Zhao that marketing initiatives could indicate an easing of China’s anti-crypto environment, the swift enforcement action demonstrates that Chinese authorities view cross-border tokenization and associated domestic affiliates through the same restrictive lens applied to retail trading. Moving forward, any foreign blockchain networks establishing on-the-ground presences face immediate, active scrutiny from coordinated inter-agency regulators.
Frequently Asked Questions
What specific rules did the PBOC cite regarding RWA tokenization?
The PBOC highlighted a February directive enacted by eight government agencies stating that overseas entities and individuals are forbidden from providing real-world asset (RWA) tokenization-related services to domestic mainland entities in any capacity.
Why was the Solana Accelerate conference suspended in Shanghai?
While Solana Foundation president Lily Liu initially cited attendance numbers exceeding registration caps, reports revealed direct PBOC and law enforcement intervention on site, leading to ongoing investigations regarding the individuals and domestic entities involved.
Is China softening its stance on cryptocurrency and digital asset entities?
No. The PBOC confirmed that local governments and financial authorities will continue targeted crackdowns on domestic virtual currency dealers, platforms, and domestic-related entities affiliated with foreign token issuers.
