Shenzhen issues risk warning: Beware of illegal financial activities under the name of stablecoin

On July 7, the Shenzhen Special Task Force Office for Preventing and Combating Illegal Financial Activities issued a risk warning stating that recently, digital money represented by stablecoins has attracted widespread attention from the market. Monitoring has found that some illegal organizations use "financial innovation" and "digital assets" as a gimmick, taking advantage of the public's insufficient understanding of stablecoins and others, to absorb funds through the issuance of so-called "virtual money," "virtual assets," and "digital assets," inducing the public to participate in trading speculation, disrupting economic and financial order, and giving rise to illegal fundraising, gambling, fraud, pyramid schemes, Money Laundering, and other criminal activities, severely jeopardizing the financial safety of the public.

The Office of the Special Working Group for the Prevention and Combat of Illegal Financial Activities reminds you: Such illegal institutions are not qualified to publicly solicit deposits from the public without the legal permission of the national financial regulatory authorities or in violation of national financial management regulations. These institutions use new concepts such as stablecoin for speculation, fabricate so-called "Virtual Money", "Virtual Assets", "digital asset" and other investment projects, publicly promote false information and absorb public funds, leading to illegal fundraising, gambling, fraud, pyramid schemes, Money Laundering and other illegal activities. The "Regulations on the Prevention and Disposal of Illegal Fundraising" stipulate that the state prohibits any form of illegal fundraising, and losses incurred from participating in illegal fundraising shall be borne by the participants themselves. We urge the public to enhance their rational investment awareness, not to blindly believe in extravagant promises, to establish correct views on currency and investment concepts, to effectively raise risk awareness, and to avoid being deceived.

If you find that relevant institutions are engaging in illegal fundraising activities under the pretext of investing in stablecoins, please promptly report to the leading departments or public security departments at the municipal or district level. Relevant departments will verify the report clues, take legal action, and reward the informants according to regulations.