tips on the prevention of “Virtual currency” trading activities for risk investors
On December 27, 2019, Beijing Bureau released a notice on tips on the prevention of “Virtual currency” trading activities for risk investors. Blockchain technology has gained lots of attention in the financial market. Virtual currency trading activities are now becoming more relevant as some virtual currency platforms provide services like zero-interest loans, dual currency wealth management, and other services through digital currency medium.
China has banned all sorts of virtual currency trading services and has warned its citizens about the risks of digital assets in online trading. The act aimed at financial risk prevention. China does not issue equal legal status with other fiat currencies and should not circulate in the market.
The financial management departments, network telecommunications management departments, and public security departments put severe restrictions on virtual currency transactions, which includes ICOs and other disguised ICOs. They have adopted legal actions like on-site interviews, website closures, legal investigations, and criminal case registering to combat their virtual trading activities.
The Bureau has put restrictions on such related activities like promotion of virtual currency platforms, sales or transactions with investors, and engagement of virtual currency overseas and other trading activities. Investors are supposed to be aware of getting deceived and report violations of law without any negligence.