Shenzhen: Beware of illegal fundraising in the name of stablecoins

PANews reported on July 7 that the Shenzhen Municipal Task Force Office for Preventing and Combating Illegal Financial Activities issued a "Risk Warning on Illegal Fund Raising in the Name of Stablecoins, etc." recently. Digital currencies represented by stablecoins have received widespread attention in the market. Monitoring found that some illegal institutions use "financial innovation" and "digital assets" as gimmicks, take advantage of the public's lack of understanding of stablecoins, etc., and absorb funds by issuing so-called "virtual currency", "virtual assets", "digital assets", etc., induce the public to participate in trading speculation, disrupt the economic and financial order, and breed illegal fundraising, gambling, fraud, pyramid schemes, money laundering and other illegal and criminal activities, seriously endangering the property safety of the public. The Shenzhen Municipal Task Force Office for Preventing and Combating Illegal Financial Activities reminds you: Such illegal institutions do not have the qualifications to publicly absorb public deposits without the permission of the national financial management department in accordance with the law or in violation of the national financial management regulations. Such institutions use new concepts such as stablecoins to speculate, fabricate so-called "virtual currency", "virtual assets", "digital assets" and other investment projects, publicly falsely advertise and absorb public funds, and breed illegal fundraising, gambling, fraud, pyramid schemes, money laundering and other illegal and criminal activities.