Weihai Local Financial Supervision and Administration Bureau Issues Risk Warning on Preventing "Virtual Currency" Illegal Activities

On December 13th, the Weihai Public Account of the Local Financial Supervision and Administration Bureau of Weihai issued a reminder on the risks of preventing "virtual currency" illegal activities. The article points out that the illegal activities of speculative blockchain fundraising, pyramid schemes, and fraud mainly have the following three characteristics: 1. Obvious network and cross-borderization; 2. Strong deception, temptation, and concealment; 3. There are various illegal risks. The above-mentioned illegal activities took the “financial innovation” as a gimmick, and the Ponzi scheme of “borrowing the old and returning the old” in essence, and it was difficult to maintain the operation of funds for a long time.
According to the requirements of the relevant documents of the National Mutual Funds Rectification Office and the Office of the Inter-Ministerial Joint Conference on Illegal Fundraising, the local financial supervision, people's bank, banking and insurance supervision, public security, market supervision and other departments in Weihai will conduct investigations and obtain evidence on the above-mentioned illegal activities and resolutely crack down on " "Blockchain" and "virtual currency" carry out illegal fundraising. Once found, it will be dealt with seriously in accordance with the documents such as the "Announcement on Preventing the Financing Risks of Token Issuance".