China warns public opinion about Ponzi's "blockchain" schemes


The Chinese government has warned against "criminals" who attract retail investors into Ponzi schemes using key words like "blockchain" and "virtual currency", as official concerns about Trump's support for the risks to the public. financial innovation.

Many investment schemes "are not really based on blockchain technology but are assuming the concept of blockchain to raise funds illegally", the People & # 39; s Bank of China, the China Banking and Insurance Regulatory Commission, & # 39; Public Security Bureau and two other agencies a joint statement on Friday.

The agencies have not announced specific political actions, but have warned the public to be on guard against "fraud" and to report suspicious activities to the authorities.

Marketing claims such as "the value will increase, never fall" and "high yield, low risk" are characteristic of fraud, the statement said.

The warning was issued while the Chinese regulators have intensified the crackdown on cryptocurrency trading and on the first offers of coins.

A multi-agency internet funding task force will take action against 124 cryptocurrencies and ICO platforms with servers located outside of China but substantially affecting Chinese residents, according to Shanghai Securities News. The report did not specify how the authorities would have acted against foreign groups.

The Tencent Internet group also closed at least four major public cryptocurrency accounts on its popular WeChat mobile messaging platform.

The company did not respond to a request for comment Friday, but other media organizations claimed that the accounts violated instant messaging regulations issued by the Chinese cyberspace administration in 2014.

ICO enjoyed a brief but intense boom in China in mid-2017, but in September the government declared them illegal and blocked the platforms that facilitated these agreements.

Days later, a multi-agency task force on internet finance closed trading for bitcoin and other cryptocurrency trading. Before the closure, local exchanges had been allowed to continue operating after a previous campaign had forced them to strengthen controls against money laundering and capital flight.

Even after exiting local platforms, trading and ICO investments continued under the radar, with investors using WeChat or other messaging tools to facilitate informal transactions.

Chinese investors were also able to access foreign companies platforms, sometimes using a virtual private network to circumvent Chinese internet controls.

In addition to targeting the overseas platform, the task force is also forcing third-party payment groups to step up measures to ensure that they do not process cryptocurrency trading and ICO payments.

Last week, a Beijing district government issued a warning prohibiting buildings for offices, hotels and shopping centers to host cryptocurrency sales and marketing events.

Additional Reports by Yizhen Jia

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