China Mutual Fund Association: Tips on Preventing Risks of ICO and "Virtual Currency" Trading Activities in the Name of Blockchain

Source: China Mutual Fund Association

On December 13th, the China Mutual Fund Association released the "Reminder on Preventing Risks of ICO and" Virtual Currency "Trading Activities in the Name of Blockchain". The full text is as follows:

According to the monitoring by the financial supervision department and the China Internet Finance Association, some criminals have recently hyped up "virtual currency" under the banner of blockchain. There has been a resurgence of ICO and "virtual currency" trading activities in China. Investigating its essence, such activities are not really based on blockchain technology, but in the name of the blockchain, the ICO and "virtual currency" transaction activities are contrary to the seven ministries and commissions such as the People's Bank of China in September 2017. The relevant provisions of the “Announcement on Preventing the Financing Risks of Token Issuance” will also harm the legitimate rights and interests of consumers.

To this end, the China Internet Finance Association solemnly reminds that member institutions should strictly abide by national laws and regulatory requirements, abide by industry self-discipline requirements, actively resist illegal financial activities, and refrain from participating in any speculation involving ICO and "virtual currency" trading activities.

China Internet Finance Association urges consumers to judge carefully the ICO and "virtual currency" transaction activities in the name of the blockchain, proactively enhance the awareness of risk prevention and self-protection, and not blindly follow the trend to prevent financial losses caused by deception. If any institution is found to be involved in such illegal financial activities, consumers should promptly report it to the relevant regulatory authority or the China Internet Finance Association, and they should report the case to the public security organ in a timely manner.