Shenzhen Issued Risk Warning: Beware of Illegal Fundraising in the Name of Stablecoins

Shenzhen's Office of the Special Task Force for Preventing and Combating Illegal Financial Activities has issued a risk warning titled 'Beware of Illegal Fundraising in the Name of Stablecoins'. The notice highlights the recent market attention on digital currencies represented by stablecoins. It warns of unlawful entities using financial innovation and digital assets as bait to attract funds through the issuance of virtual currencies, assets, and digital assets, leading to disruptions in economic and financial order, fostering illegal fundraising, gambling, fraud, pyramid schemes, money laundering, and other criminal activities that seriously endanger public financial security. The 'Regulations on the Prevention and Handling of Illegal Fundraising' stipulate that all forms of illegal fundraising are prohibited by the state, and losses incurred from participating in illegal fundraising must be borne by the participants themselves. The public is urged to enhance their rational investment awareness, avoid blindly trusting extravagant promises, establish correct monetary and investment concepts, increase risk awareness, and prevent falling victim to scams. If any organization is found engaging in illegal fundraising activities under the guise of investing in stablecoins, individuals are encouraged to report promptly to the relevant authorities or the public security department at the municipal or district level.

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