Shenzhen warns citizens of investment scams using stablecoins
The post Shenzhen warns citizens of investment scams using stablecoins appeared on BitcoinEthereumNews.com. Authorities in the Chinese city of Shenzhen have warned residents about fraudulent investment schemes tied to digital assets and stablecoins. In a statement published on July 7, the city’s Office of the Municipal Task Force for Preventing and Combating Illegal Financial Activities cautioned against deceptive platforms posing as legitimate crypto investment opportunities. According to the task force, bad actors are exploiting public enthusiasm for digital assets. They are promoting false investment opportunities using terms like “stablecoins,” “virtual currency,” and “digital assets.” These groups use flashy advertising to lure victims into illegal activities, including pyramid schemes, gambling operations, fraud, and money laundering. The statement emphasized that such schemes violate China’s financial regulations. According to the authorities, most of these organizations are unlicensed and are illegally raising funds from the public. In such cases, any financial losses are not protected and must be borne by those who invested in the fraudulent projects. As a result, the city urged investors to avoid offers that promise unrealistic returns and report suspicious platforms. According to the statement: “If you find that relevant institutions are engaged in illegal fundraising in the name of investing in stablecoins, please report it to the non-leading department of the city or district or the public security department in a timely manner. The relevant departments will verify the reported clues, crack down on them according to law, and reward the informants according to regulations.” Stablecoins draw international attention Shenzhen’s warning comes amid a global rise in stablecoin adoption, with demand growing in both emerging and developed markets. Stablecoins, which are digital assets pegged to fiat currencies like the US dollar, have gained popularity for offering price stability in volatile markets. This utility has made them a go-to option for users looking to store value or transact across borders. The stablecoin market,…
The post Shenzhen warns citizens of investment scams using stablecoins appeared on BitcoinEthereumNews.com.
Authorities in the Chinese city of Shenzhen have warned residents about fraudulent investment schemes tied to digital assets and stablecoins. In a statement published on July 7, the city’s Office of the Municipal Task Force for Preventing and Combating Illegal Financial Activities cautioned against deceptive platforms posing as legitimate crypto investment opportunities. According to the task force, bad actors are exploiting public enthusiasm for digital assets. They are promoting false investment opportunities using terms like “stablecoins,” “virtual currency,” and “digital assets.” These groups use flashy advertising to lure victims into illegal activities, including pyramid schemes, gambling operations, fraud, and money laundering. The statement emphasized that such schemes violate China’s financial regulations. According to the authorities, most of these organizations are unlicensed and are illegally raising funds from the public. In such cases, any financial losses are not protected and must be borne by those who invested in the fraudulent projects. As a result, the city urged investors to avoid offers that promise unrealistic returns and report suspicious platforms. According to the statement: “If you find that relevant institutions are engaged in illegal fundraising in the name of investing in stablecoins, please report it to the non-leading department of the city or district or the public security department in a timely manner. The relevant departments will verify the reported clues, crack down on them according to law, and reward the informants according to regulations.” Stablecoins draw international attention Shenzhen’s warning comes amid a global rise in stablecoin adoption, with demand growing in both emerging and developed markets. Stablecoins, which are digital assets pegged to fiat currencies like the US dollar, have gained popularity for offering price stability in volatile markets. This utility has made them a go-to option for users looking to store value or transact across borders. The stablecoin market,…
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