China’s Warning on Cryptocurrencies

China, noted for its strict bans on Bitcoin (BTC) and cryptocurrencies, has issued a new warning.

The Shenzhen government officially stated that cryptocurrencies and stablecoins have recently garnered substantial interest and cautioned investors regarding potential fraud.

The Shenzhen Office of the Special Task Force for Prevention and Control of Illegal Financial Activities released a warning titled “Beware of the Risks of Illegal Fundraising in the Name of Stablecoins and Other Instruments.”

The statement highlighted that stablecoins and cryptocurrencies have attracted market attention and have been misused.

It pointed out that certain illegal organizations are unlawfully raising funds using concepts like stablecoins and digital assets, engaging in fraud, money laundering, and other illicit activities.

Officials urged the public to stay watchful and informed about investment opportunities.

Authorities reiterated that the “Regulation on Preventing and Dealing with Illegal Fundraising” forbids the state from collecting any form of illegal funds.

They encouraged people to report any cryptocurrency-related schemes or incidents they encounter.

This is not investment advice.