The Beijing Internet Finance Association (BIFA) has issued a warning regarding the risks associated with unregulated cryptocurrency schemes.
Risks of Unregulated Crypto Schemes
BIFA expressed concerns about unregulated schemes targeting assets like Bitcoin and Ethereum. The warning highlights the risks associated with 'stablecoin wealth plans'. The association urges the public to exercise caution and avoid unauthorized projects.
Examples of Fraudulent Schemes
BIFA refers to incidents like the PlusToken scandal to emphasize potential fraud risks. The warning also states that schemes promising high returns are often fraudulent. 'High returns and high risks go hand in hand,' says BIFA.
Ongoing Regulatory Stance in China
The warning reinforces China's current policy to restrict unauthorized digital currency transactions, initiated in 2021. The association stresses the need for stringent oversight in the evolving digital finance market.
Overall, BIFA's warning highlights the need for vigilance against unregulated cryptocurrency schemes and the importance of investor protection against high risks.
