CSRC (SEC of China) published a “serious warning” letter through its Beijing office about “Trading Cryptocurrency”

China Securities Regulatory Commission (CSRC) published a “serious warning” letter through its Beijing office about “Trading Cryptocurrency”, according to CSRC on December, 27.

According to that, CSRC explains why you need to carefully for virtual currency.

Recently, with the promotion of blockchain technology, virtual currency trading activities are showing signs of resurgence in China. They have launched zero-interest loans, dual currency wealth management and other projects through digital currency mortgages. Serious violations of the “Announcement on Preventing the Financing Risk of Tokens” issued by the People’s Bank of China (PoC) and other seven ministries and commissions are suspected of engaging in illegal financial activities and disrupting the economic and financial order.

China Securities Regulatory Commission | Photo: VCG

The financial management departments, network telecommunications management departments, and public security departments within the jurisdiction continue to maintain high pressure on virtual currency transactions, ICOs and disguised ICOs, and comprehensively use on-site interviews, administrative investigations, website closures, and criminal case filing to combat them.

At the same time, investors are reminded to maintain rationality, strengthen awareness of risk prevention and identification capabilities, beware of being deceived, and report related violations of laws and regulations in a timely manner.

China is the largest cryptocurrency market and blockchain patent in the world, however they have so many scam projects like Plus Token, Cloud Token, and WoToken.

In May, a project to impersonate Tron and Bittorrent also fraud in China up to 30 million USD, making a woman kill herself and Justin Sun, CEO of TRON, is suspected of abetting scam.

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