Digital Currency Risks Highlighted Amid Market Attention

According to Odaily, digital currencies, particularly stablecoins, have recently garnered significant market attention. Monitoring has revealed that certain illicit organizations exploit the public's limited understanding of stablecoins and other digital assets. These entities promote 'financial innovation' and 'digital assets' as a guise to attract funds through the issuance of so-called 'virtual currencies' and 'virtual assets.' This practice encourages public participation in speculative trading, disrupting economic and financial order and fostering illegal activities such as fundraising, gambling, fraud, pyramid schemes, and money laundering, which severely threaten public property safety. The Shenzhen Office for Preventing and Combating Illegal Financial Activities warns that these organizations operate without legal authorization from national financial management departments or in violation of national financial regulations. They lack the qualifications to publicly accept deposits from the public. By leveraging new concepts like stablecoins, these entities fabricate investment projects involving 'virtual currencies,' 'virtual assets,' and 'digital assets,' engage in false advertising, and attract public funds, leading to illegal activities such as fundraising, gambling, fraud, pyramid schemes, and money laundering.