China Increases Regulation on False Cryptocurrency Profiles Encouraging Unlawful Transactions
China's cybersecurity and informatization authorities have reaffirmed their commitment to maintaining a strict crackdown on illegal online financial activities, including the spread of false information about stocks and cryptocurrencies.
In recent weeks, several social media accounts have come under scrutiny for promoting misleading narratives about investment opportunities, stock trends, and cryptocurrency markets. The Weibo account "Love Stocks App" and the Douyin account "Value Discoverer" shared misleading details regarding institutional transfer arrangements, financing, and margin trading. Similarly, two accounts on Xiaohongshu and another two on Baidu Baijia have been accused of disseminating false information, promising insights on specific stocks, and promoting certain stock purchases as foolproof investments.
These accounts were alleged to have misled users, disrupted the financial market's order, and infringed on the legal rights of financial institutions. The cybersecurity and informatization department reminded netizens to establish correct investment concepts, enhance risk prevention awareness, and strengthen financial information identification.
The agency also emphasized the importance of maintaining a correct investment concept and strengthening financial risk prevention awareness. They urged the public to avoid spreading rumors, believing rumors, and participating in illegal financial activities to prevent personal property losses or information leaks.
In addition to these accounts, numerous Weibo accounts have been found encouraging users to engage in virtual currency trading by sharing group chat invitations and displaying screenshots of alleged profits. Multiple accounts across WeChat, Weibo, and Kuaishou platforms employed suggestive language to lure investors into paid groups.
The WeChat public account "Captain Jack Macro Strategy" circulated false rumors concerning regulatory policies on quantitative funds, while the Baidu Baijia account "Northern Bear Cat" spread inaccurate reports about changes to capital market trading hours.
China's cybersecurity and informatization authorities have not released a detailed list of specific accounts involved in spreading false information about stocks and cryptocurrencies. However, they continue to enhance their efforts to curb crypto-related fraud and scams while maintaining strict regulations on cryptocurrency activities.
Recent Developments in Crypto Regulation and Scam Crackdowns
China's stance on cryptocurrencies has been clear in recent years. In 2021, China implemented a comprehensive ban on all crypto transactions and mining activities, citing concerns over energy consumption, illegal activities, and capital flight. Recent misinformation about new bans has been debunked, but the existing ban remains in effect.
China is actively promoting its state-backed digital yuan, which is seen as a way to tighten financial control and reduce reliance on private cryptocurrencies. Chinese authorities have also cracked down on scams involving Tether's USDT stablecoin and dismantled a Bitcoin laundering ring involving former employees of Kuaishou, a popular short-form video platform.
The agency encourages the public to remain vigilant and report any suspected violations to help uphold market integrity and digital security. By doing so, they aim to protect consumers from falling victim to fraudulent investment opportunities and maintain the stability of China's financial markets.
Read also:
- Social Security Administration Abandons Plan for Electronic Payments: Important Information for Recipients of Benefits
- AI-Powered Transportation Stock's Possible Challenge to Tesla's Autonomous Dreams?
- Airbus readies for maiden flight test of hydrogen fuel-cell engine of megawatt class
- Japan's distinctive journey towards carbon neutrality, outlined at the G7 summit in Hiroshima.
