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The China Securities Regulatory Commission issued the "Regulatory Guidelines on the Offshore Issuance of Asset-Backed Securities Tokens for Domestic Assets."

The China Securities Regulatory Commission (CSRC) has issued the "Regulatory Guidelines on the Offshore Issuance of Asset-Backed Securities Tokens for Domestic Assets." The guidelines refer to the offshore issuance of asset-backed securities tokens for domestic assets as activities that issue tokenized equity certificates abroad, supported by cash flows generated from domestic assets or related asset rights, utilizing cryptographic technology and distributed ledger or similar technologies. The offshore issuance of asset-backed securities tokens for domestic assets must strictly comply with laws, administrative regulations, and relevant policy provisions regarding cross-border investment, foreign exchange management, network and data security, and must fulfill the approval, filing, or security review procedures required by the aforementioned regulatory authorities, without harming national interests and public welfare.It is mentioned that the China Securities Regulatory Commission will conduct strict regulation of the offshore issuance of asset-backed securities tokens for domestic assets in accordance with the law and regulations. Before carrying out related business, the domestic entity that actually controls the underlying assets must file with the CSRC, submitting the filing report, complete set of offshore issuance materials, and other relevant documents as required, fully explaining the information of the domestic filing entity, underlying asset information, token issuance plan, and other circumstances. The domestic filing entity and its controlling shareholders, actual controllers, directors, supervisors, senior management personnel, as well as relevant intermediary institutions must ensure that the filing materials provided are true, accurate, and complete, and must not contain false records, misleading statements, or significant omissions.

The heads of the central bank and the securities regulatory commission: The domestic policy stance has always been prohibitive towards activities related to virtual currencies

According to Jinshi reports, relevant officials from the People's Bank of China and the China Securities Regulatory Commission answered reporters' questions regarding the "Notice on Further Preventing and Dealing with Risks Related to Virtual Currencies." They stated that regarding virtual currencies, there has long been a prohibitive policy stance on related business activities within the country.In 2013, the People's Bank of China and five other departments jointly issued the "Notice on Preventing Bitcoin Risks," which clarified that Bitcoin is a specific virtual commodity and should not be circulated or used as currency in the market. The "Notice on Further Preventing and Dealing with Risks of Virtual Currency Trading Speculation," issued in 2021, further clarified that Bitcoin, Ethereum, and stablecoins such as Tether do not have the same legal status as fiat currency, and conducting virtual currency-related business activities within the country is considered illegal financial activity and is strictly prohibited.The notice continues the policy stance of recent years, reiterating that virtual currencies do not have the same legal status as fiat currency, and conducting virtual currency-related business activities within the country is illegal financial activity. Foreign entities and individuals are not allowed to illegally provide virtual currency-related services to domestic entities in any form.

Governor of the Bank of Korea: Authorities plan to allow domestic institutions to issue virtual assets, but there are still controversies surrounding stablecoins

According to the Mobile Payment Network, Bank of Korea Governor Lee Chang-yong stated at the Asian Financial Forum in Hong Kong that due to market pressures, authorities have allowed South Korean residents to invest in virtual assets issued overseas. Meanwhile, financial regulators are studying the establishment of a new registration system to permit domestic institutions to issue virtual assets.He pointed out that the won-denominated stablecoin is expected to be primarily used for cross-border transactions, while tokenized deposits will be more for domestic payments, but he emphasized that there are still many controversies surrounding stablecoins. He is concerned that once the won stablecoin is launched, it may be used to circumvent capital flow management measures, especially when combined with widely used and easily accessible dollar stablecoins, which poses even greater risks.Lee Chang-yong mentioned that the transaction costs of dollar stablecoins are much lower than directly using dollars, and during exchange rate fluctuations, it can easily trigger large inflows of funds; moreover, most dollar stablecoins are issued by non-bank institutions, significantly increasing regulatory difficulties. In addition, South Korea's rapid payment system has matured, and the advantages of retail central bank digital currency (CBDC) are not obvious. The central bank is promoting several pilot projects to lay out tokenized deposits and wholesale CBDCs to maintain a dual financial system.

South Korea is considering allowing domestic institutions to issue virtual assets, while stablecoins remain controversial

Li Changyong stated at the Asian Financial Forum in Hong Kong that, in light of market pressures, South Korean authorities have allowed domestic residents to invest in virtual assets issued overseas. The financial regulatory department is considering establishing a new registration system to allow domestic institutions to issue virtual assets.Li Changyong pointed out that if a won-denominated stablecoin is launched, its main use may focus on cross-border transactions, while tokenized deposits are more suitable for domestic payment scenarios. However, he emphasized that there is still considerable controversy surrounding stablecoins. The core concern is whether the won stablecoin could be used to circumvent capital flow management, especially when used in conjunction with dollar stablecoins.He further stated that dollar stablecoins have a wide range of applications and low entry barriers, with related transaction costs significantly lower than directly using dollars. When exchange rate fluctuations trigger changes in market expectations, funds may quickly flow into dollar stablecoins, causing large-scale capital transfers; at the same time, the participation of numerous non-bank institutions in stablecoin issuance also significantly increases regulatory difficulties.In addition, Li Changyong noted that South Korea itself has a highly developed fast payment system, so the advantages of retail central bank digital currency (CBDC) are limited. Currently, the central bank is advancing tokenized deposits and wholesale CBDC through multiple pilot projects to maintain the existing dual financial system.

Caixin discloses Chen Zhijing's domestic assets: holds shares in two listed companies and has stakes in several financial companies

Caixin reported details of Chen Zhi's assets within China, stating that he holds a 17.78% stake in Xiamen Jueshi Wushen Interactive Technology Co., Ltd., a company primarily engaged in mobile game development. He also holds a 70% stake in Chongqing Qusu Wuxian Equity Investment Fund Management Co., Ltd., which has invested in several interactive entertainment technology companies. Chen Zhi was also the controlling shareholder of Jiangmen Dacheng Medical Equipment Co., Ltd., which operates in the medical device sector, with a shareholding ratio exceeding 56%.In addition, Chen Zhi is the controlling shareholder of two listed companies in Hong Kong, and he has several insurance brokerage firms, securities companies, wealth management companies, and shell companies with unclear business activities. In December 2018, Chen Zhi took control of Zhihua Da, directly serving as the chairman and executive director after acquiring a 54.79% stake, until resigning from all positions in July 2025. In 2023, Chen Zhi took over all shares sold by the original major shareholder of Kun Group, gaining a 55% absolute controlling stake, but did not assume the role of executive director. Currently, these two listed companies have not suspended trading and have stated that the sanctions will not have any significant adverse impact on the group's business operations.
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