Shenzhen issues risk warning: Beware of illegal fundraising under the guise of stablecoins

ChainCatcher news, the Shenzhen Special Task Force Office for the Prevention and Control of Illegal Financial Activities has issued a risk warning titled "Beware of Risks of Illegal Fundraising in the Name of Stablecoins and Other Instruments." The content includes, "Recently, digital currencies represented by stablecoins have received widespread attention in the market. Monitoring has found that some illegal institutions use financial innovation and digital assets as a gimmick, taking advantage of the public's insufficient understanding of stablecoins and similar instruments. They absorb funds by issuing so-called virtual currencies, virtual assets, and digital assets, inducing the public to participate in trading speculation, disrupting economic and financial order, and breeding illegal fundraising, gambling, fraud, pyramid schemes, money laundering, and other criminal activities, severely endangering the property safety of the public.

The "Regulations on the Prevention and Handling of Illegal Fundraising" stipulate that the state prohibits any form of illegal fundraising, and losses incurred by participating in illegal fundraising shall be borne by the participants themselves. We urge the public to enhance their awareness of rational investment, not to blindly believe in extravagant promises, to establish correct monetary concepts and investment philosophies, to effectively improve risk awareness, and to avoid being deceived. If you discover relevant institutions engaging in illegal fundraising activities under the guise of investing in stablecoins and similar instruments, please report them promptly to the municipal or district departments responsible for non-financial risk prevention or to the public security department."