The China Internet Finance Association and six other departments issued a risk warning regarding the prevention of illegal activities related to virtual currencies
The China Internet Finance Association and six other departments issued a risk warning, emphasizing that virtual currencies and tokenized real-world assets do not have the status of legal tender and carry risks such as fraud and money laundering. Relevant institutions are prohibited from engaging in related businesses, and the public should be vigilant against such activities
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Correctly understand the essential attributes of virtual currencies, tokenization of real-world assets, and related activities. Virtual currencies are not issued by monetary authorities, are not legal tender of the state, do not have the same legal status as legal tender, and cannot be circulated or used as currency within our country. Among them, π coins and other air coins lack substantial technological innovation, have no clear commercial application scenarios and value, have opaque issuance and operation mechanisms, and are severely plagued by fraud and market manipulation issues, often associated with pyramid schemes and scams conducted in their name. Stablecoins currently cannot effectively meet requirements for customer identity verification, anti-money laundering, and other aspects, posing risks of being used for illegal activities such as money laundering, fundraising fraud, and illegal cross-border fund transfers. Tokenization of real-world assets involves financing and trading activities through the issuance of tokens or other rights and bonds with token characteristics, which carry multiple risks, including false asset risks, operational failure risks, and speculative risks. Currently, our country's financial regulatory authorities have not approved any tokenization activities of real-world assets.
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Relevant institutions are prohibited from engaging in businesses related to virtual currencies and tokenization of real-world assets.
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The public should remain highly vigilant against all forms of virtual currency and real-world asset token business activities.
Risk Warning and Disclaimer
The market has risks, and investment requires caution. This article does not constitute personal investment advice and does not take into account the specific investment goals, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article align with their specific circumstances. Investing based on this is at one's own risk
