Local Chinese Officials Alert Citizens to Cryptocurrency Scams in Wake of Intensified Clampdown

As the crackdown on crypto-related deception continues within China’s borders, officials from the financial oversight sector and law enforcement in a Liaoning province’s city have issued a cautionary statement to investors regarding deceptive “illegal fundraising activities” that mask themselves as attractive investment propositions in cryptocurrency and the metaverse.

This advisory, issued by the Dalian securities agency in conjunction with six additional enforcers, depicted how “dishonest actors” exploit digital platforms like WeChat groups for enticing individuals into acquiring fake digital assets through unauthorized apps. Such conduct may be indicative of suspect illegal fundraising, fraudulent schemes, and additional criminal operations, according to these entities.

The Dalian officials’ announcement supplements an array of earlier issuances by national regulatory institutions like the People’s Bank of China, which underscore the illicit character of tokens issuance, financing, and exchange.

In September 2021, the PBOC, coupled with the Supreme People’s Court and other pivotal bodies, proscribed all crypto exchange undertakings within the mainland’s borders. It was declared that offshore crypto exchange services directed at residents of China’s mainland are illegal monetary activities.

While crypto trade and mining face stringent measures on the mainland, Hong Kong has adopted a more welcoming stance toward digital asset companies last year. As of June 2023, Hong Kong inaugurated its licensing system for crypto trading platforms, permitting authorized exchanges to cater to retail investors. Among those licensed are two platforms: HashKey and OSL.

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