On February 20, the Dalian Supervision Bureau of the China Supervision and Administration Commission issued a risk warning jointly issued by the Dalian Municipal Leading Group Office for the Disposal of Illegal Fundraising, the Dalian Municipal Public Security Bureau, the Dalian Municipal Market Supervision Administration, the Dalian Branch of the People's Bank of China, the Dalian Supervision Bureau of the State Financial Supervision Administration, the Dalian Securities Regulatory Bureau, and the Dalian Communications Administration, reminding the general public to guard against illegal fundraising in the name of "virtual currency", "metaverse" and "wealth sharing".
How do criminals cheat?
Trick illegal apps into buying illegal virtual currency.
The Risk Reminder on the Prevention of Illegal Fundraising in the Names of "Virtual Currency", "Metaverse" and "Wealth Sharing" (hereinafter referred to as the "Risk Warning") shows that recently, some criminals have used the name of "virtual currency" and "Metaverse" to lure investors into buying their own illegal virtual currencies by forming WeChat groups online and other means, and are suspected of illegal fundraising, fraud and other illegal and criminal activities, seriously infringing on the property safety of the people. Disrupting the order of economic and financial activities.
Risk Reminder 1: Since 2017, China has explicitly prohibited token issuance and financing.
Risk Warning" reminds the general public that in September 2017, the People's Bank of China and other seven departments jointly issued the "Announcement on Preventing the Risk of Token Issuance and Financing", which clearly prohibits all kinds of token issuance and financing activities, pointing out that token issuance and financing "is essentially an act of illegal public financing without approval, suspected of illegal sale of token tickets, illegal issuance**, illegal fundraising, financial fraud, pyramid schemes and other illegal and criminal activities".
Risk Warning 2: Virtual currency trading contracts are not protected by law.
Risk Reminder reminds the public that in May 2021, the Internet Finance Association of China, the China Banking Association, and the Payment and Clearing Association of China jointly issued the "Announcement on Preventing the Risk of Speculation in Virtual Currency Transactions", pointing out that "from the perspective of China's existing judicial practice, virtual currency transaction contracts are not protected by law, and the consequences and losses caused by investment transactions shall be borne by the relevant parties".
Risk Warning 3: Losses caused by illegal financial activities shall be borne by the investor.
In September 2021, the People's Bank of China, the Supreme People's Court and other ten departments jointly issued the Notice on Further Preventing and Handling the Risk of Speculation in Virtual Currency Transactions, which clearly carried out the exchange business between legal tender and virtual currency, the exchange business between virtual currencies, the trading of virtual currencies as a counterparty, the provision of information intermediary and pricing services for virtual currency transactions, token issuance financing, and virtual currency derivatives trading and other virtual currency-related business activities suspected of illegal sale of token tickets and unauthorized public offerings** , illegal business operation, illegal fund-raising and other illegal financial activities; Overseas virtual currency exchanges provide services to residents in China through the Internet, which is also an illegal financial activity; At the same time, it is once again clarified that if any legal person, unincorporated organization or natural person invests in virtual currency and related derivatives in violation of public order and good customs, the relevant civil legal acts shall be invalid, and the losses arising therefrom shall be borne by them.
According to Article 25 of the Regulations on the Prevention and Handling of Illegal Fundraising, the losses incurred by the participants in participating in illegal fundraising shall be borne by the fundraising participants. The general public is requested to be vigilant, enhance risk prevention awareness and identification ability, establish a correct investment concept, consciously stay away from illegal financial activities such as "virtual currency" trading speculation and illegal fundraising, beware of personal property losses, and if you participate in it, you should withdraw as soon as possible.
Peninsula Morning News, 39 degrees ** chief reporter Zhao Hui.