A warning was issued by Chinese financial watchdogs and police in a Liaoning province city, warning investors to steer clear of “illegal fundraising activities” that pose as profitable ventures combining bitcoin and the metaverse.
The announcement is the result of China’s continued efforts to combat cryptocurrencycurrency fraud and its ban on trading cryptocurrencycurrencies.
“Unscrupulous individuals” have set up schemes on WeChat groups and other online platforms to lure investors into downloading unapproved apps and purchasing bogus cryptocurrencycurrencies, according to a combined alert from six other regulators and Dalian’s securities authority. These activities can point to fraud, illegal fundraising, and other criminal conduct, according to the authorities.
Before Dalian officials published its public warning, the People’s Bank of China and other national regulatory agencies had issued several warnings describing the illegal nature of token issuance, financing, and trading.
In September 2021, an order prohibiting the trade of cryptocurrencycurrencies on the mainland was issued by the People’s Court, the People’s Bank of China, and a number of other governmental authorities. The ban made it obvious that any services international bitcoin exchanges provide to mainland Chinese nationals are unlawful financial activities.
In contrast to the more widespread ban on cryptocurrencycurrency sales and mining on the Chinese mainland, Hong Kong last year extended a warm welcome to cryptocurrencycurrency companies.
In June 2023, Hong Kong officially opened its cryptocurrencycurrency licensing procedure for platforms that trade virtual assets, allowing authorized exchanges to offer retail trading services. The Hong Kong government has granted licenses to HashKey and OSL.
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