Hainan's local financial regulator has issued a warning about "fake digital asset exchange

Hainan Warns Against Unauthorized 'Data Asset Exchanges'—RWA Tokenization Remains Illegal in China

Hainan's financial regulator is sounding the alarm. The authority warned that entities are using names like "Hainan International Data Asset Exchange" to promote RWA and RDA tokenization, claiming to operate legally.

The warning is clear: no such exchange has been approved. Without provincial government approval, using "exchange" or "trading center" in a company name—or operating as one—is off-limits. More importantly, China's 2021 joint circular from eight central government bodies lays out the rule: RWA tokenization is prohibited domestically. Any domestic activity—including intermediary and IT services—may constitute illegal fundraising, securities fraud, or unauthorized issuance of tokens. Investors are told to stay clear.