Cryptocurrency News

Southern China Warns Investors Against Illegal Token Platforms

Following China’s major regulatory crackdown on cryptocurrency, financial regulators in the country’s smallest province of Hainan reportedly issued a warning against crypto or blockchain-themed illegal fundraising schemes.

According to local reports, the Hainan branch of the People’s Bank of China, the country’s central bank and the local financial supervision authority were among the regulators who Announcement.

Regulators warned investors about illegal fundraising campaigns that use virtual currency or blockchain as promotional material, stating that illegal token issuance and financing activities are prohibited.

“No so-called token financing platform shall engage in the business of fiat-to-fiat and exchange between tokens or virtual currencies,” the regulator said, which simply means that those token financing platforms will be used as fiat-to-crypto gateways. as cannot be done. It is also forbidden to buy, sell or act as an intermediary to buy or sell tokens for the said platforms, the report said.

The warning also included financial and payment institutions banning them “directly or indirectly”. [providing] Services related to virtual currencies.

Last month, China Internet Finance Association, China Banking Association and China Payment and Clearing Association shared statement issued About the risks of cryptocurrency trading.

After massive power cuts at the Chinese mining hub of Xinjiang in mid-April, Beijing officials focused on Energy consumption of crypto mining data centers. Many large-scale bitcoin (B T c) miners have since announced their plan to cease operations in the country.

regulatory information Close monitoring of bitcoin mining Alliance with Elon Musk Make Bitcoin Payments U-Turn for TeslaThis causes a price crash for the BTC and crypto markets in general. The increased volatility of cryptocurrencies triggered a series of warnings from central banks and financial institutions around the world.