Shenzhen Financial Regulatory Authority: Beware of Illegal Fundraising by Unlawful Entities in the Name of "Stablecoin"

BlockBeats News, July 7th. The Office of the Special Taskforce for Preventing and Combating Illegal Financial Activities in Shenzhen, China, issued a risk warning stating that recently, digital currencies represented by stablecoins have received widespread market attention. Monitoring has found that some illegal entities, under the guise of "financial innovation" and "digital assets," take advantage of the public's limited understanding of stablecoins. They raise funds through the issuance of so-called "virtual currency," "virtual assets," "digital assets," misleading the public to participate in speculative trading. This behavior disrupts the economic and financial order, breeds illegal fundraising, gambling, fraud, pyramid schemes, money laundering, and other criminal activities, seriously endangering public financial security.

The Office of the Special Taskforce for Preventing and Combating Illegal Financial Activities in the City reminds you: Such illegal entities have not obtained legal permission from the national financial regulatory authorities or have violated national financial regulations, lacking the qualifications to publicly raise deposits. These entities hype up stablecoins and new concepts, fabricate so-called investment projects of "virtual currency," "virtual assets," "digital assets," engage in false publicity, and attract public funds, fostering illegal fundraising, gambling, fraud, pyramid schemes, money laundering, and other criminal activities. According to the "Regulations on the Prevention and Treatment of Illegal Fundraising," the country prohibits all forms of illegal fundraising, and participants are solely responsible for the losses incurred from participating in illegal fundraising. The general public is advised to enhance their awareness of rational investment, not blindly trust unrealistic promises, establish the correct concept of currency and investment, effectively improve risk awareness, and avoid falling victim to fraud.

If you discover any organizations engaging in illegal fundraising activities under the guise of investing in stablecoins, please promptly report to the non-lead department of the city or district or to the public security department. Relevant departments will verify the reported clues, crack down in accordance with the law, and reward the informants as prescribed.