Shenzhen Issues Risk Alert: Beware of Illegal Fundraising in the Name of Stablecoins

The Shenzhen Special Task Force Office for Preventing and Combating Illegal Financial Activities issued a "Risk Alert on Guarding Against Illegal Fundraising in the Name of Stablecoins, etc." The content includes: "Recently, digital currencies represented by stablecoins have received widespread attention in the market. Monitoring has found that some illegal institutions use financial innovation, digital assets, and other gimmicks, taking advantage of the public's lack of understanding of stablecoins, etc., to absorb funds by issuing so-called virtual currencies, virtual assets, and digital assets, inducing the public to participate in trading and speculation, disrupting economic and financial order, and breeding illegal and criminal activities such as illegal fundraising, gambling, fraud, pyramid schemes, and money laundering, which seriously endanger the safety of the public's property. The 'Regulations on Preventing and处置 Illegal Fundraising' stipulates that the state prohibits any form of illegal fundraising, and the losses suffered from participating in illegal fundraising shall be borne by the participants themselves. The public is requested to enhance their awareness of rational investment, not blindly believe in extravagant promises, establish correct concepts of currency and investment, effectively improve risk awareness, and avoid being deceived. If it is found that relevant institutions are engaged in illegal fundraising activities in the name of investing in stablecoins, etc., please report them to the municipal and district disposal departments or the public security department in a timely manner." [ChainCatcher]