China Internet Finance Association: Risk Tips on Participating in Speculative Hype of Overseas Virtual Currency Trading Platforms

On April 2nd, the WeChat public account @China Internet Finance Association released "Risk Tips on Participating in Speculative Hype of Overseas Virtual Currency Trading Platforms". The article pointed out that in 2017, the People ’s Bank of China, together with the Central Internet Information Office and other seven departments, issued the “Announcement on Preventing Token Issuance Financing Risks”, clarifying that virtual currency transactions and ICOs are illegal financial activities, and carried out cleanup and rectification work. To avoid regulatory crackdowns, some virtual currency trading platforms register or set up servers overseas and continue to engage in related activities.

These platforms often attract consumers' attention with various gimmicks, and also use robot programs to brush and tamper with data to create the illusion of "prosperity" in the virtual currency trading market. It should be noted that due to “going overseas” operations, the operating entities of these platforms are relatively hidden. By frequently changing website domain names and server addresses, and adopting online diversion and offline transactions, they have avoided the crackdown of regulatory authorities. , Office locations and business development areas are often different, consumers are often unable to determine the identity of the operator, and it is difficult to recover property losses once they occur.

To this end, the China Internet Finance Association solemnly reminds that any institution or individual should strictly abide by national laws and regulatory requirements, and not participate in virtual currency trading activities and related speculation. Member institutions should also abide by the industry's self-regulatory requirements and take the initiative to resist illegal financial activities without providing convenience. Consumers should proactively enhance their awareness of risk prevention and self-protection, and do not blindly follow the trend to participate in relevant speculation. If any institution is found to be involved in such illegal financial activities, report it to the relevant regulatory authority or the China Internet Finance Association in time, and suspect it of illegality Anyone who commits a crime shall promptly report the case to the public security organ.