China's securities regulator has told some brokerages to pause their real-world asset (RWA) tokenization businesses in Hong Kong, Reuters reported on Monday.

At least two brokerages have been advised not to conduct any RWA business offshore, according to the report, citing sources familiar with the matter.

The guidance is aimed at strengthening risk management among firms wishing to cash in on the proliferation of digital assets in the special administrative region of Hong Kong.

A number of Chinese companies, including brokerages, have launched RWAs in Hong Kong over the past few months.

The move from China's Securities Regulatory Commission (CSRC) suggests concern in Beijing about Hong Kong's progress toward hosting a booming digital asset market.

China banned cryptocurrency mining a

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