TechFlow news, on July 25, according to an official announcement from the Haidian District Financial Administration Bureau, recently digital currencies represented by stablecoins have attracted widespread market attention. Some illegal organizations use buzzwords such as "financial innovation" and "digital assets" to take advantage of the public's limited understanding of stablecoins, raising funds by issuing so-called "virtual currencies," "virtual assets," or "digital assets," luring the public into trading and speculation, disrupting economic and financial order, and breeding illegal activities including unlawful fundraising, gambling, fraud, pyramid schemes, and money laundering, seriously endangering the public's property security.
The authority warns that no organization may raise funds from the public without legal approval from national financial regulators. A small number of illegal organizations exploit new concepts like stablecoins for hype, conduct false public promotions, and solicit public funds, leading to various criminal activities such as unlawful fundraising. According to the Regulations on the Prevention and Disposal of Illegal Fundraising, the state prohibits any form of illegal fundraising, and losses incurred from participation in illegal fundraising shall be borne by the participants themselves.
