According to @simplykashif, Chinese authorities have warned the public to be cautious about RWA tokenization, describing it as risky, not officially permitted, and difficult to supervise (source: @simplykashif on X, Dec 6, 2025). He also reports that this warning followed the People's Bank of China stating that stablecoins violate China's KYC and AML requirements (source: @simplykashif on X, Dec 6, 2025). For traders, the reported stance signals heightened regulatory risk for RWA and stablecoin activities connected to China, suggesting tighter risk limits and close monitoring of liquidity and spreads during Asia trading hours (source: @simplykashif on X, Dec 6, 2025). Traders can monitor for headline-driven volatility in RWA-related assets and stablecoin pairs and reassess counterparty and compliance risks for China-facing flows (source: @simplykashif on X, Dec 6, 2025).

According to the source, Pan Gongsheng, Governor of the People's Bank of China, said at the 2025 Financial Street Forum that the PBoC will continue working with law enforcement to crack down on domestic virtual-currency operations and speculation to maintain economic and financial order, source: Pan Gongsheng, People's Bank of China, remarks at the Financial Street Forum Annual Conference on Oct 27, 2025. He stated that market-issued cryptocurrencies, especially stablecoins, have proliferated but remain in an early stage, and that international financial organizations and central banks broadly take a cautious stance toward stablecoin development, source: Pan Gongsheng, People's Bank of China, Oct 27, 2025 remarks. Pan added that multiple policy documents released since 2017 to prevent and handle risks from virtual-currency trading and speculation remain valid, source: Pan Gongsheng, People's Bank of China, Oct 27, 2025 remarks. He also said the PBoC will closely track and dynamically assess offshore stablecoin developments, source: Pan Gongsheng, People's Bank of China, Oct 27, 2025 remarks. For traders, this confirms continued regulatory pressure on Mainland-facing on/off-ramps, OTC activity, and stablecoin usage tied to China exposure, reinforcing compliance risk in strategy and liquidity planning, source: Pan Gongsheng, People's Bank of China, Oct 27, 2025 remarks.