Shenzhen Financial Regulatory Authority: Beware of Illegal Fundraising by Unlawful Entities Posing as "Stablecoin"

July 7th. The Shenzhen Office of the Special Task Force for Preventing and Combating Illegal Financial Activities issued a risk warning indicating that recently, digital currencies represented by stablecoins have attracted extensive attention in the market. Through monitoring, it has been discovered that some illegal institutions, under the guise of "financial innovation" and "digital assets," take advantage of the public's lack of understanding of stablecoins to raise funds by issuing so-called "virtual currency," "virtual assets," "digital assets," etc., inducing the public to participate in speculative trading, disrupting economic and financial order, and giving rise to illegal fundraising, gambling, fraud, pyramid schemes, money laundering, and other illegal criminal activities, which seriously endanger the public's property security. The Shenzhen Office of the Special Task Force for Preventing and Combating Illegal Financial Activities reminds you: Such illegal institutions, without the approval of national financial regulatory authorities or in violation of national financial management regulations, do not have the qualifications to openly accept public deposits. These institutions hype up stablecoins and other new concepts, fabricate so-called investment projects of "virtual currency," "virtual assets," "digital assets," and openly engage in false propaganda to attract public funds, resulting in illegal fundraising, gambling, fraud, pyramid schemes, money laundering, and other illegal criminal activities. The "Regulations on the Prevention and Treatment of Illegal Fundraising" stipulate that the state prohibits any form of illegal fundraising, and any losses incurred from participating in illegal fundraising shall be borne by the participants. The general public is urged to enhance their awareness of rational investment, not blindly trust alluring promises, establish the correct concept of money and investment, effectively raise their risk awareness, and avoid becoming victims of fraud. If any institution is found to be engaging in illegal fundraising activities under the guise of investing in stablecoins, please promptly report it to the leading department in the city or district or the public security department. Relevant departments will verify the reports based on the clues and take law enforcement actions, and in accordance with regulations, reward those who provided the reporting clues.