7 industry associations issue joint warning to prevent illegal activities involving virtual currencies
File photo: VCG
Seven Chinese industry associations, including the National Internet Finance Association of China, jointly issued a risk warning on Friday, requiring all member institutions not to participate in virtual currencies, real-world asset tokens issuance and trading activities within the country. The public is reminded to recognize risks and stay away from illegal activities, the Xinhua News Agency reported.
In response to the recent hype and speculation around virtual currency trading, this warning is issued to alert the public against potential illegal practices. Under the guise of stablecoins, air coins, real-world asset tokens and “mining,” they have engaged in illegal fundraising, pyramid schemes, fraud and other illegal activities, seriously infringing upon the property safety of the general public, according to Xinhua.
According to the alert, virtual currencies are not issued by monetary authorities, lack legal tender status and therefore cannot be circulated or used as currency in China. At present, China’s financial regulatory authorities have not approved any real-world asset tokenization activities.
The warning said that all member institutions must not provide any related services to clients for the issuance or trading of virtual currencies or real-world asset tokens in China, and should conduct comprehensive risk warnings and educational alerts through multiple channels, Xinhua reported.
In addition, the general public should remain highly vigilant toward all forms of virtual currency and real-world asset token-related business activities, according to the warning.
Global Times
