China’s securities regulator has told some brokerages to pause their real-world asset (RWA) tokenization businesses in Hong Kong, Reuters reported on Monday.

At least two brokerages have been advised not to conduct any RWA business offshore, according to the report, citing sources familiar with the matter.

The guidance is aimed at strengthening risk management among firms wishing to cash in on the proliferation of digital assets in the special administrative region of Hong Kong.

A number of Chinese companies, including brokerages, have launched RWAs in Hong Kong over the past few months.

The move from China’s Securities Regulatory Commission (CSRC) suggests concern in Beijing about Hong Kong’s progress toward hosting a booming digital asset market.

China banned cryptocurrency mining and trading in 2021 out of concerns of potential destabilization of its financial system.

Hong Kong has its own financial system, separate from the Chinese mainland as part of the “One Country, Two Systems” framework.