The Xin Kang Jia platform, promising high returns, collapsed, affecting millions of investors. These events raise questions about cryptocurrency regulation in China.
Promises and False Partnerships of Xin Kang Jia
Founded in 2021, Xin Kang Jia promised astonishing 2% daily returns from futures trading. The platform misled investors by creating false connections with organizations such as DGCX and PetroChina, fostering trust among market participants.
Financial Losses and Complex Transfers
Following the collapse of Xin Kang Jia, 1.8 million investors faced losses amounting to 13 billion RMB. Complex transactions involving USDT linked to the platform hindered tracking efforts and minimized the chances of fund recovery for affected investors.
Regulatory Challenges and Future Prospects
The Xin Kang Jia case highlights the complex challenges facing Chinese regulators in the digital asset space, comparable to the PlusToken case. Experts point to the need for improved global coordination in cross-border cryptocurrency regulation.
The fall of Xin Kang Jia leaves numerous questions about the future of cryptocurrency regulation in China and the need to protect investors from fraudulent schemes.
