China warns investors about crypto scams

A local regulator has spoken out about illegal crypto schemes through online platforms such as WeChat

20.02.2024 - 12:45

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2 min

What’s new? Authorities in China have urged investors to be wary of “illegal fundraising activities” disguised as lucrative investment opportunities related to cryptocurrencies and the metaverse. In a joint statement, Dalian’s securities regulator and six other authorities said the attackers were luring investors through online platforms such as WeChat groups to download illegal apps and buy illegal digital assets. Such activities could lead to illegal fundraising, fraud, and other criminal activities, authorities said.

Statement from the authorities

What else is known? The public warning from Dalian authorities follows a series of notices from the country’s regulators, including the People’s Bank of China, detailing the illegal nature of token issuance, funding, and trading.

In September 2021, central authorities issued a notice banning any cryptocurrency trading activities on the mainland. According to the document, services provided by foreign crypto exchanges to Chinese residents on the mainland are considered illegal financial activities.

At the same time, at the end of 2023, it became known that the Chinese authorities intend to accelerate the introduction of blockchain technologies, despite the ban on cryptocurrencies in the country. Thus, the Ministry of Industry and Information Technology is forming a roadmap for the development of the Web 3.0 sector, which involves stimulating developments in the areas of NFTs and DApps.