Chinese regulators have jointly issued a warning against illegal fundraising and trading activities involving digital currencies.
Warnings against foreign cryptocurrency projects
Six major organizations set warning Friday. This is the People's Bank of China, the Banking Regulatory Commission, theSecurities Regulatory Commission, the Department of Public Safety, the Central Cyberspace Affairs Commission and the State Administration for Market Regulation.
The initiative focuses on virtual currency projects that implement operations involving IP addresses abroad. These involve investments by Chinese residents and use mobile and digital payment tools to facilitate cryptocurrency trading.
"Some of these projects involve celebrities and bounty (reward program) for promotion and solicitation. ... In fact, they manipulate the prices of crypto-currencies to make illegal profits, "said the regulators in the warning, adding:"Some individuals claim in email messaging discussion groups that they are able to invest in cryptocurrency projects abroad on behalf of domestic investors as a broker .... These claims are very likely to be fraudulent. "
New illegal practices
Regulators also reported new fundraising methods other than Initial Coin Offering (ICO) such as Initial Exchange Offering, Initial Fork Offering and Initial Miner Offering as a potential scam.WeChat accountsand Alipay suspected to handle cryptocurrency transactions are also under surveillance. Government agencies and these two payment applications work together to keep Chinese users safe.
Recall that on May 10, a representative of the Chinese government told the local media that by the end of 2019 China will be forced to make its own national standards for Blockchain, with a view to an efficient adoption .What do you think of the Chinese regulators' initiatives? Share your opinion in the comments section below.
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