In February 2026, eight Chinese government departments jointly issued a notice reaffirming that virtual currency-related business activities constitute illegal financial activities, and for the first time explicitly extending the prohibition to real-world asset (RWA) tokenization. Meanwhile, just across the Shenzhen River, Hong Kong has been rapidly constructing a five-licence regulatory framework covering trading platforms, stablecoin issuance, custody, advisory, and asset management services, guided by the principle of "same business, same risk, same rules." A single border separates two fundamentally different legal orders for Web3.

This book takes "separated governance of currency and chain" as its core concept, systematically analyzing the internal logic of this unique regulatory landscape. China's prohibition is not a rejection of technology, but a defense of monetary sovereignty and financial stability. Hong Kong's openness is not an unconditional embrace, but a precise experiment in bringing digital assets into the traditional financial regulatory framework through licensing. The two are not simply opposed; they represent an institutional division of labor under a single sovereignty?risk containment domestically, innovation exploration offshore.

Across ten chapters, the book examines the genealogy of prohibition, the licensing architecture, the stablecoin intersection, the RWA tokenization conflict, competing jurisdictions, compliance strategies for market participants, and global comparisons. It offers a complete cognitive map and practical guide for legal practitioners, crypto enterprises, investors, and regulatory researchers. At a turning point when Web3 is moving from the margins to the mainstream, understanding the rules along this border?and finding a compliant path forward?has never been more urgent.