China, which has strict bans against Bitcoin (BTC) and cryptocurrencies and does not compromise on these bans, continues to warn investors about cryptocurrencies.
At this point, Chinese authorities issued a notice to warn investors about illegal fundraising scams through cryptocurrencies.
A joint statement by the Dalian financial regulator and the police said fraudsters were defrauding investors through online platforms such as WeChat groups by convincing them to download illegal apps and buy illegal cryptocurrencies.
Authorities warned investors to be careful with and against online platforms such as WeChat groups, and stated that it was regulated.
“Recently, some scammers have created online WeChat groups under the title of “sharing wealth and business opportunities” and used terms such as “virtual currency” and “Metaverse” to trick investors into downloading software and defraud investors.
At this point, we would like to remind you that all cryptocurrency trading activities were banned in the country in September 2021.
In addition, according to Article 25 of the Regulation on Preventing and Combating Illegal Fundraising, any damages incurred due to participation in illegal fundraising activities belong to the individuals who suffer losses, and the state will not provide any assistance.
The public must be careful. At this point, the public needs to raise awareness about risk prevention and the creation of correct investment concepts.
“The public should also take action to raise awareness among investors to stay away from “virtual currency” trading speculations, illegal fundraising and other illegal financial activities.”
*This is not investment advice.
