Shenzhen Financial Regulatory Authority: Beware of Illegal Fundraising by Unlawful Entities Posing as "Stablecoin"

BlockBeats News, July 7th. The Shenzhen Office of the Special Task Force for Preventing and Combating Illegal Financial Activities issued a risk warning stating that recently, digital currencies represented by stablecoins have received widespread attention in the market. Monitoring has found that some unlawful institutions, under the guise of "financial innovation" and "digital assets," take advantage of the public's lack of understanding of stablecoins to absorb funds through the issuance of so-called "virtual currency," "virtual assets," "digital assets," etc., inducing the public to participate in speculative trading, disrupting economic and financial order, fostering illegal fundraising, gambling, fraud, pyramid schemes, money laundering, and other illegal criminal activities, seriously endangering the public's property security.

The Shenzhen Office of the Special Task Force for Preventing and Combating Illegal Financial Activities reminds you: Such unlawful institutions, without the approval of the national financial regulatory authorities or in violation of national financial management regulations, do not have the qualifications to openly accept public deposits. These institutions hype up stablecoins and other new concepts, fabricate so-called investment projects of "virtual currency," "virtual assets," "digital assets," openly engage in false propaganda, and attract public funds, fostering illegal fundraising, gambling, fraud, pyramid schemes, money laundering, and other illegal criminal activities. The "Regulations on the Prevention and Treatment of Illegal Fundraising" stipulate that the state prohibits any form of illegal fundraising, and any losses incurred from participating in illegal fundraising shall be borne by the participants. The general public is urged to enhance their awareness of rational investment, not blindly trust enticing promises, establish the correct concept of money and investment, effectively raise their risk awareness, and avoid falling victim to fraud.

If any institution is found engaging in illegal fundraising activities under the guise of investing in stablecoins, please promptly report it to the lead department in the city or district or to the public security department. Relevant departments will verify the reports based on the clues and take law enforcement action, and in accordance with regulations, reward those who provided the reporting clues.