China ramps up a crackdown on crypto scams ahead of new anti-fraud rules.

Chinese authorities have ramped up a crackdown on cryptocurrency and other financial scams ahead of new anti-fraud rules.

According to the Reuters report, China has shut roughly 6,000 peer-to-peer (P2P) platforms in a purge of an industry that still owed victimized investors over $100 billion as of last August. According to China’s banking regulator, financial frauds are mutating in their complexity and widening, which last week called for tougher crackdowns. China shut over 7,500 financial scams last year, up 27% from the previous year.

 

China to introduce new anti-fraud rules. 

The clampdown on crypto and financial scammers comes as rules combating illegal fundraising come into force on May 1, putting the onus on local officials to kill off investment scams at an early stage, said a local financial regulator who attended several mobilization conferences this week. Reuters quoted an unnamed official saying, “Previously, you asked victims to go to court. Now, victims can bring officials to court for the negligence of duty.” The official further added that the crackdown aims to ensure social stability ahead of the July 1 party anniversary, a highly sensitive event.

 

Banks are helping in suspected illegal investment schemes in cryptocurrencies. 

The report further revealed that banks are now cooperating with local governments to identify suspected illegal investment schemes in cryptocurrencies. Recently, there has been a boom in Filecoin trading in lower-tier cities as investors seek alternative cryptocurrencies to bet on. Some banks have also flagged scams using China’s sovereign digital currency, e-CNY, as bait. Other targets of the current crackdown include private equity, wealth management, and real estate investment schemes, the banking regulator informed. The People’s Bank of China is also pushing the rollout of its digital yuan now. As reported earlier, one of China’s leading retail company JD.com has now started paying salaries to its employees in digital yuan. 

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Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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