China releases warning about cryptocurrency scams

24 Aug, 2018
by David Borman
China releases warning about cryptocurrency scams

Cointelegraph is reporting today that multiple Chinese authorities came together recently to release a statement about the dangers of various illegal fundraising schemes, using blockchain and cryptocurrency as a front for their scams.

The statement was issued by China’s Banking Regulatory Commission, the Ministry of Public Security and the People’s Bank of China (PBoC). All three organizations feel that there is a need to warn the public about nefarious groups who try to use tech industry buzz words like "blockchain" but only exist to take money from unsuspecting investors and deliver nothing in return.

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

In general, China has been upping its attempts at being involved in the crypto world. It recently banned any cryptocurrency related events in the Chaoyang district, and has a reputation for being wary of crypto in general.

This news is in no way a change of policy for China, but rather an astute assessment that there are many people out there who would gladly take advantage of unsuspecting newcomers in cryptocurrency. Hopefully the public heeds this warning.

Follow Chepicap now on Twitter and Telegram!

Add a comment

Check out the latest news

You will be logged out and redirected to the homepage