The Beijing Internet Finance Industry Association (BIFA) published an opinion on July 9 urging retail investors to reject the throws that envelop the sales of old -fashioned pyramids in cryptographic terminology.
According to local mediaBIFA said that promoters have started to advertise “Stablecoin wealth plans”, “web 3.0 dividends” and similar offers that promise fixed yields.
The circular has listed five illegal fund collection characteristics: operate without license, use technical jargon to amplify information gaps, emit false guarantees, recycle new deposits to pay for previous participants and reticue fraud or money laundering.
BIFA advised the public to check the license of a company through national regulators and to know that high yields often have a high risk.
This also reminds the victims that China’s regulations on prevention and the provision of illegal fundraising maintains the investor responsible for any loss. The reports stressed that the warning totals nearly 1,500 Chinese characters and appeared first on the verified WeChat chain of Bifa.
Past fraud informs current rhetoric
Plusthen is a portfolio service that collapsed in 2019 and brought together around 200,000 Bitcoin (BTC) and 9 million Ethereum (ETH).
The amount was worth more than $ 4 billion at prices of 2020, making it one of the largest PONZI diets using crypto fashion.
The episode has shown how promoters can migrate coins through exchanges and mixers before liquidation, pushing the application in a multi -year pursuit.
In particular, China prohibited the direct trade services of Crypto-to-Fiat in 2021, but internal interest persists via offshore platforms and ramps on the gray market.
The regulators of Beijing, Shanghai and Shenzhen have each published at least a consumer notice on the scams in chips this year.
Potential warning reasons
Detail speculation has accelerated on the continent’s social platforms where an unofficial stock market index of the “Stablecoin concept” has increased by 88% since April, as Reuters reported.
Market interest has also followed the rules for closing the Stablescoin of Hong Kong, which should take effect on August 1, while large technological companies explore tokens with Renminbi.
Reports have also surfaced that national blogs have started to promote “USDT mining pools” and “stablescoins of CNH insured”, which prompted local regulators to prepare application measures.
The Bifa declaration concludes by publishing its hotline and recommending that investors who identify without license activities report it to the police or financial supervisors.
The association adds that it will transmit credible councils to provincial working groups which follow an illegal public fundraising.
