China Reiterates Crypto Ban as Fundraising Scams Surge

Chinese authorities issue stark reminder that crypto activities are banned in the country following cases of fundraising scams.

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  • China has reiterated its crypto ban.
  • Local authorities issued a warning notice to the public on Tuesday.
  • The notice highlighted increasing cases of crypto-fueled fundraising scams.

Chinese authorities have reminded the public for the umpteenth time that investing in crypto is an illegal activity that “violates public order and good customs.”

On February 20, the Dalian Supervision Bureau of China Securities Regulatory Commission issued the latest stark reminder and a warning urging the public to beware of illegal fundraising scams in the name of “virtual currency and Metaverse” opportunities.

Flanked by six other local authorities, Dalian’s securities watchdog noted that criminals are increasingly using the names “virtual currency’ and “Metaverse” to lure investors into “sharing wealth and business opportunities” via software advertised in WeChat groups and offline tours.

“Illegal APPs purchase their own illegal virtual currencies, which are suspected of illegal fund-raising, fraud and other illegal and criminal activities, seriously infringing on people's property safety and disrupting the order of economic and financial activities.” The regulator wrote.

Following the observation, the regulator asked the public to be vigilant and enhance risk prevention awareness by “cautiously” avoiding virtual currency trading speculation. Any losses from participation in illegal fund-raising activities “shall be borne by the participants themselves.”

The regulator further reminded the public to adhere to three other notices issued in September 2017, May 2021, and September 2021 by multiple authorities, raising concerns about preventing and dealing with risks in virtual currency transactions.

In the meantime, as China reiterates its anti-crypto stance, its special administrative region, Hong Kong, allows users to trade digital assets through regulated crypto exchanges, such as HashKey and OSL.

Read about China’s booming underground crypto market:
China Records $86.4B Crypto Transaction Volume Despite Ban

Read how Chinese officials are allegedly involved in crypto bribes:
Chinese Officials Take Cold Wallet Bribes Despite Crypto Ban

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