China's financial regulators have issued a warning regarding the tokenization of real-world assets (RWA), labeling it as risky and unapproved. This announcement follows a recent statement from the People's Bank of China (PBoC) highlighting that stablecoins do not comply with the country's Know Your Customer (KYC) and Anti-Money Laundering (AML) standards. The regulatory stance underscores China's cautious approach towards integrating digital assets within its financial system, emphasizing the need for stringent compliance with existing financial regulations.