Shenzhen: Beware of illegal fundraising activities using stablecoins and other names

The Office of the Shenzhen Special Task Force for Preventing and Combating Illegal Financial Activities has issued a risk warning. Recently, digital currencies represented by stablecoins have received widespread market attention. Monitoring has found that some illegal institutions use "financial innovation" and "digital assets" as gimmicks, taking advantage of the public's lack of understanding of stablecoins and other assets to attract funds through the issuance of so-called "virtual currencies", "virtual assets", "digital assets" and other means, inducing the public to participate in trading and speculation, disrupting economic and financial order, breeding illegal fundraising, gambling, fraud, pyramid schemes, money laundering and other illegal criminal activities, seriously endangering the safety of public property. The Office of the Municipal Task Force for Preventing and Combating Illegal Financial Activities reminds you that such illegal institutions do not have the qualifications to publicly accept public deposits without the legal permission of the national financial management department or in violation of national financial management regulations. These types of institutions use new concepts such as stablecoins for speculation, fabricate investment projects such as so-called "virtual currencies," "virtual assets," and "digital assets," publicly advertise and absorb public funds, and breed illegal fundraising, gambling, fraud, pyramid schemes, money laundering, and other illegal criminal activities. The Regulations on the Prevention and Disposal of Illegal Fundraising stipulate that the state prohibits any form of illegal fundraising, and any losses incurred due to participation in illegal fundraising shall be borne by the fundraising participants themselves. Please enhance the rational investment awareness of the general public, do not blindly believe in unrealistic promises, establish correct monetary and investment concepts, effectively improve risk awareness, and avoid being deceived.