The government of the Chinese city of Shenzhen has issued an official warning regarding investments in cryptocurrencies and stablecoins, urging citizens to exercise caution.
Warning from Shenzhen Authorities
An official statement from the Shenzhen Office of the Special Task Force for Prevention and Control of Illegal Financial Activities declared that cryptocurrencies and stablecoins, gaining popularity in the market, bring risks of fraud.
Fraud and Illegal Schemes Issues
The statement emphasizes that some illegal organizations are using the concepts of stablecoins and digital assets for fundraising and are engaging in illegal actions such as fraud and money laundering.
Advice for Investors
Authorities have urged citizens to remain vigilant and informed about investment opportunities. It is reiterated that the 'Regulation on Preventing and Dealing with Illegal Fundraising' prohibits the collection of any illegal funds. Citizens are advised to report any schemes or incidents related to cryptocurrency to the relevant authorities.
The new warning from Shenzhen authorities highlights the importance of vigilance among citizens regarding cryptocurrency investments and the need to protect against illegal financial practices.
