Chinese Authorities Warn Investors of Cryptocurrency Scams
Chinese financial watchdogs and police in the Liaoning province have issued a warning to investors about “illegal fundraising activities” disguised as profitable cryptocurrency and metaverse investment opportunities. This notice is part of China’s ongoing crackdown on crypto-related fraud following the ban on crypto trading.
Authorities Highlight Scams Orchestrated Through Online Platforms
In a joint notice, Dalian’s securities regulator and six other authorities emphasized that unscrupulous individuals have been using platforms like WeChat groups to deceive investors into downloading illegal apps and purchasing illegitimate cryptocurrencies. These actions can potentially lead to suspected illegal fundraising, fraud, and other criminal activities.
Continued Efforts to Combat Illegal Crypto Activities
Dalian’s warning is just one of several issued by Chinese regulatory bodies, including the People’s Bank of China, regarding the illegal nature of token issuance, financing, and trading. In September 2021, the PBOC, Supreme People’s Court, and other central authorities banned all crypto trading activities in mainland China. They also clarified that overseas crypto exchanges providing services to Chinese residents are engaging in illegal financial activities.
Hong Kong Takes a Different Approach
Unlike mainland China’s strict stance on crypto trading and mining, Hong Kong has embraced cryptocurrency firms. In June 2023, Hong Kong introduced its crypto licensing regime for virtual asset trading platforms. Two platforms, HashKey and OSL, have already received licenses to offer retail trading services in Hong Kong.
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