On July 12, the Beijing Internet Finance Industry Association issued a warning about potential risks associated with unauthorized investments in cryptocurrency and digital assets.
Warning about Cryptocurrency Investment Risks
The Association urged the public to remain vigilant regarding investments in cryptocurrency products that claim 'risk-free profits' or 'guaranteed returns.' The warning references previous fraud schemes like PlusToken, emphasizing the ongoing threat posed by such activities.
Recommendations for Investors
The Association identified key risk factors, including false promises and dependence on new investment inflows. Investors are advised to verify company licenses through national regulator resources to avoid falling into schemes resembling Ponzi.
Expected Regulatory Measures
The advisory also warns of possible stricter regulations for the cryptocurrency sector and encourages citizens to report suspicious activities related to illegal fundraising.
The warning from the Beijing Internet Finance Industry Association underscores the importance of verifying legal qualifications before investing in cryptocurrencies and highlights the need for vigilance amid increasing regulation.
