Seven Departments Including the National Internet Finance Association of China Issue Risk Warning on Preventing Illegal Activities Involving Virtual Currencies

Seven departments, including the National Internet Finance Association of China, have issued a risk warning on preventing illegal activities involving virtual currencies. "Recently, concepts related to virtual currencies have rapidly gained popularity, and some criminals have taken the opportunity to promote trading and speculative activities. Under the guise of stablecoins, 'air coins' (such as Pi Coin), real-world asset (RWA) tokens, and 'mining,' they engage in illegal fundraising, pyramid schemes, fraud, and other illegal activities. They also use virtual currencies to transfer illegal gains from criminal activities, seriously infringing on the property safety of the general public and disrupting the normal economic and financial order.

In order to further implement the requirements of the 'Announcement on Preventing the Risks of Token Issuance Financing,' the 'Notice on Further Preventing and Handling the Risks of Virtual Currency Trading and Speculation,' and other regulations issued by the People’s Bank of China, the National Administration of Financial Regulation, the China Securities Regulatory Commission, and other departments, as well as to carry out the spirit of the coordination mechanism meeting on cracking down on virtual currency trading and speculation, the National Internet Finance Association of China, the China Banking Association, the Securities Association of China, the Asset Management Association of China, the China Futures Association, the China Association for Public Companies, and the Payment & Clearing Association of China have jointly issued this risk warning."