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

"Recently, concepts related to virtual currencies have been heating up rapidly. Some lawbreakers are taking advantage of this to hype up trading and speculation activities, carrying out illegal fundraising, pyramid schemes, and fraud under the guise of stablecoins, 'air coins' (such as Pi Coin), real-world asset (RWA) tokens, and 'mining.' They also use virtual currencies to transfer proceeds from illegal and criminal activities, which seriously infringes on the property security of the general public and disrupts the normal order of the economic and financial system.

To further implement the requirements of the ‘Announcement on Preventing the Risks of Token Issuance Financing,’ the ‘Notice on Further Preventing and Dealing with the Risks of Virtual Currency Trading and Speculation,’ and other regulations issued by the People's Bank of China, the National Financial Regulatory Administration, the China Securities Regulatory Commission, etc., as well as to implement the spirit of the coordination mechanism meeting for 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 hereby jointly issue the following risk warning."