Central Bank, Gov & # 39; t Caution Public Over Fake Cryptocurrency Schemes

Multiple Chinese authorities have issued a stark warning on attempts to raise money illegally by claiming affiliation to the cryptocurrency industry in a bulletin on Friday, August 24th.

Sounding the alarm about "lawless entities" attempting to accumulate funds "using the banner of innovation" and "blockchain" "and distributing" the so-called "virtual currency", "virtual goods" and "digital assets", "the document urges the public to be" rational "about information related to the blockchain.

Its authors include the China's Banking Regulatory Commission, the Ministry of Public Security and the People & # 39; s Bank of China (PBoC).

"Such activities are not really based on blockchain technology, but rather on the practice of speculative blockchain concepts for illegal fundraising, pyramid schemes and fraud," reads

The document arrives a few days after the Beijing authorities announced that they would accelerate efforts to block domestic access to offshore cryptocurrencies

A new group of 124 platforms would be added to the Great Fir Chinese ewall, while the government is also taking steps to prohibit other activities that might amount to supporting cryptocurrency.

"The funds for these illegal activities are mostly abroad, and supervision and monitoring are very difficult", admits the most recent document in the meantime

Despite focusing on really illegal activities , PBoC continues to guarantee good faith cryptocurrency businesses, ICO schemes and similar operators remain non-gracious in China since bans on various aspects of the industry entered into force last year.

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