With the joint issuance of the "Notice on Further Preventing and Handling Risks Related to Virtual Currencies" (hereinafter referred to as "Document No. 42") by eight departments including the People's Bank of China, a regulatory framework for the issuance of Real-World Assets (RWAs) by domestic assets overseas has begun to take shape. The overall tone of Document No. 42 is a strict prohibition on RWAs domestically and strict regulation overseas. According to sources familiar with the regulations, Hong Kong is one of the overseas issuance locations for RWAs. RWAs based on Hong Kong assets are not within the scope of Document No. 42's regulation and are not under the responsibility of domestic regulatory authorities. Currently, there are no RWAs based on domestic securities or funds as underlying assets in Hong Kong or other overseas locations. If there are, they are under the responsibility of the Institutional Department of the China Securities Regulatory Commission (CSRC). Furthermore, "previously, it was completely prohibited." Now, "it's not said that it's completely prohibited," but strict regulation is being implemented for domestic assets issuing RWAs overseas. This does not imply "encouragement" and should not be interpreted as "promoting development." (Caixin)