The financial regulator in the city of Shenzhen has issued an official warning regarding the rise of fraudulent schemes disguised as investment projects involving stablecoins and other crypto assets. Authorities emphasize that such schemes are often financial pyramids or organized for money laundering and theft.
This is reported by Business • Media
The Danger of New Fraudulent Schemes in the Cryptocurrency Sector
The statement from the special operations group for preventing and controlling illegal financial activities notes that fraudsters are actively exploiting the low level of financial literacy among the population. They take advantage of the popularity of stablecoins by creating so-called “investment projects” that are actually aimed at misappropriating users’ funds.
“These structures use new concepts, such as stablecoins, to promote so-called investment projects related to ‘virtual assets’,” the warning states.
According to the regulator’s findings, such schemes are often financial pyramids, gambling operations, or tools for money laundering and theft. It is also emphasized that citizens who fall victim to such scams bear responsibility for their financial losses on their own.
Growing Interest in Stablecoins Worldwide
The latest warning from Chinese authorities was issued shortly after news that major technology companies in China supported the issuance of stablecoins backed by the yuan. At the same time, interest in such digital assets is also rising in other countries. In particular, the Japanese digital bank Minna announced a collaboration with the Solana Foundation, Fireblocks, and TIS to explore the possibilities of using stablecoins in the financial sector.