Caixin: Document No. 42 emphasizes strict regulation of overseas RWA; CICC Hong Kong has contacted public blockchains and exchanges.

Over the weekend of the release of the "Notice on Further Preventing and Handling Risks Related to Virtual Assets" (Document No. 42), the CICC Hong Kong team contacted several public blockchains and exchanges to explore potential business cooperation. Another public blockchain executive stated their desire to explore cooperation opportunities with investment banks and other intermediaries, while Ant Group and JD.com also expressed concern about the policy changes. The report noted that Hong Kong is one of the overseas issuance locations for RWAs. Sources familiar with the regulations stated that RWAs with Hong Kong assets as underlying assets are not within the scope of Document No. 42; however, if domestic securities or funds are used as underlying assets and RWAs are issued overseas, the relevant departments of the China Securities Regulatory Commission (CSRC) are responsible. The relevant statements emphasize that strict regulation will be implemented for RWAs issued overseas using domestic assets, and this should not be interpreted as an encouragement or a signal of relaxed regulation. (Caixin.com)