Blockchain is not equal to the nationwide rectification of virtual currency.
With the blockchain technology becoming a hot spot of social concern, the virtual currency severely cracked down by the regulatory authorities has a resurgence momentum. In response to this new situation, in recent two days, many regulatory authorities announced that a new round of clean-up and rectification has been launched nationwide.
On November 22, a person close to the Office of the National Internet Financial Risk Special Remediation Group (hereinafter referred to as the Remediation Office) said that the connotation of blockchain is very rich and does not mean virtual currency. At present, all promotional activities on virtual currency under the banner of blockchain are illegal. The attitude of the regulatory authorities against virtual currency speculation and virtual currency trading places has not changed at all.
It is understood that at present, the regulatory authorities have made overall arrangements, requiring all parts of the country to comprehensively investigate the latest situation of the territory’s use of blockchain to carry out virtual currency speculation activities, and if problems arise, they should be dealt with as early as possible. In the next stage of work, the regulatory authorities will intensify efforts to clean up and rectify virtual currency and trading places, and find and dispose of them together.
Virtual currency transactions of domestic organizations
revival
As early as September 4, 2017, the seven departments issued the Announcement on Preventing the Financing Risks of Token Issuance, cleaned up and rectified ICO and virtual currency trading places, and clearly raised virtual currency from investors, suspected of illegally selling token coupons, illegally issuing securities, and illegal fund-raising, financial fraud, pyramid schemes and other illegal and criminal activities. The scale of domestic virtual currency transactions has fallen sharply, effectively avoiding the impact of the skyrocketing price of virtual currency on China’s financial market.
Since then, in view of the behavior of setting up servers overseas to provide virtual currency trading services to domestic residents, the supervision has been further strengthened, and the rectification has been continuously strengthened from the payment and settlement end.
However, recently, with the popularity of blockchain, virtual currency has made a comeback, and some illegal activities have shown signs of resurgence. On the one hand, the price of virtual currency, including bitcoin, has soared, and the market has made inappropriate remarks such as "Announcement on Preventing the Financing Risks of Token Issuance"; On the other hand, although some institutions do not involve money, they engage in illegal financial activities in the name of blockchain.
For example, some enterprises organize virtual currency transactions in China in the name of "blockchain innovation"; Issue virtual currency in the form of ×× coins and ×× chains on the grounds of "blockchain application scenario", issue white papers, fictionalize the use of ecology, and raise funds or virtual currency assets such as Bitcoin and Ethereum; Some institutions provide publicity, drainage and trading services for ICO projects and virtual currency trading platforms registered overseas, and even some illegal institutions issue or promote legal digital currency in the name of the People’s Bank of China, and use the "legal digital currency" gimmick to defraud investors.
On the 13th of this month, official website, the central bank, also issued an announcement to clarify that the so-called statutory digital currency issue on the Internet and the actions of individual institutions to launch "DC/EP" or "DCEP" in the name of the People’s Bank of China for trading on the asset trading platform may involve fraud and pyramid schemes. Please raise the public’s awareness of risks, not be credulous, and prevent the interests from being damaged.
The nationwide clean-up and rectification has begun.
In recent two days, the regulatory authorities in Shenzhen, Shanghai and Beijing have issued orders to crack down on illegal virtual currency, and the curtain of nationwide rectification has been opened. At the same time, the regulatory authorities remind investors to enhance their awareness of risk prevention, remain vigilant against the above-mentioned illegal financial activities, report relevant illegal clues in time, and beware of being deceived.
On November 21st, the Office of the Leading Group for Special Remediation of Internet Financial Risks in Shenzhen issued a "About Prevention ‘ Virtual currency ’ Risk warning of illegal activities. " It is suggested that with the promotion of blockchain technology, virtual currency speculation has been on the rise recently, and some illegal activities have shown signs of resurgence. According to the relevant deployment of the National Mutual Fund Remediation Office, the Shenzhen Internet Financial Risk and other special rectification work leading group office will conduct investigation and evidence collection on the above illegal activities. Once found, it will be dealt with seriously in accordance with the requirements of the Announcement on Preventing the Financing Risks of Token Issuance.
On the afternoon of November 22nd, the Office of Shanghai Financial Stability Joint Conference and the Shanghai Headquarters of the People’s Bank of China also indicated that it was necessary to intensify supervision and control and crack down on virtual currency transactions. In the next step, we will continuously monitor the virtual currency business activities within our jurisdiction, and deal with them immediately once they are found, so as to prevent problems before they happen. At the same time, the two departments reminded investors not to confuse blockchain technology with virtual currency. There are multiple risks in the financing and trading of virtual currency issuance, including false asset risk, business failure risk, investment speculation risk, etc. Investors should enhance their awareness of risk prevention and beware of being deceived. Investors who discover various forms of virtual currency business activities and organizations or individuals that continue to conduct ICO and virtual currency trading business for domestic residents by deploying overseas servers can report to the regulatory authorities, and those who are suspected of violating the law and committing crimes can report to the public security organs.
On the evening of the same day, the Beijing Youth Daily reporter learned that in order to prevent the resurgence of illegal financial activities in virtual currency trading and effectively protect the interests of investors, according to the work deployment of the National Leading Group Office for Special Remediation of Internet Financial Risks, the Beijing Local Financial Supervision Bureau and the People’s Bank of China Business Management Department adhered to the principle of "outcrop and fight" for the above illegal financial activities, and continued to maintain a high-pressure situation of supervision. Together with the China Internet Finance Association and the National Internet Emergency Center, they will comprehensively explore the virtual currency trading venues and other organizations within their jurisdiction. Once discovered, they will follow the ""
According to reports, China Internet Finance Association and Emergency Center have also started searching the whole network to deal with newly discovered domestic virtual currency trading places, ICO activities and overseas virtual currency trading platforms. At the same time, payment institutions are required to strengthen investigation and cleaning from the payment and settlement links. At present, some areas have established technical search and arrangement systems, while financial offices in some areas have established real-time technical interfaces with emergency centers, and the emergency centers regularly search and arrange local websites with problems, so as to find and deal with them in time.
related news
Beijing police arrested dozens of people
Illegal digital currency trader
The resurgence of virtual currency has been highly concerned by the regulatory authorities. Since the beginning of this year, the regulatory authorities have been maintaining a high-pressure and severe crackdown and rectifying the chaos.
According to authoritative data, since 2019, six newly discovered virtual currency trading platforms in China have been closed, and 203 overseas virtual currency trading platforms have been disposed of in seven batches. Through two large non-bank payment institutions, nearly 10 thousand payment accounts were closed; On the WeChat platform, close to 300 publicity and marketing applets and WeChat official account were closed.
It is worth noting that the police have also begun to intervene in related cases. According to insiders, Hangzhou and Beijing have successively "closed down" virtual currency exchanges, and more than 100 people have entered the prosecution procedure.
According to a source close to the regulatory authorities, recently, the Beijing police cracked the fraud case of the illegal digital currency Stock Exchange BISS in one fell swoop and arrested dozens of suspects, which effectively shocked the illegal institutions and sounded the alarm for investors.
According to previous public information, BISS not only claims to be the world’s first membership exchange, but also claims to be "the world’s first currency+currency stock exchange". Investors can not only trade virtual currency, but also buy US stocks with one click. Registered users in the currency market are divided into ordinary users and VIP members, and the membership level and corresponding rights and interests are upgraded according to the number of invited paid members. BISS designs a VIP rating system similar to pyramid schemes: "Money market members invite friends to become new members, and in addition to commission rebate, they can also get high BISS cash back. Invite level 1 friends to become members and get 80 BISS cash back; Inviting a level 2 friend to become a member of the currency market can get 40 BISS cashback, and there is no upper limit on the income of members inviting cashback. " Its entire membership is divided into six grades, and the more people pull, the higher the grade, and the higher the grade, the commission can enjoy the following three layers at most. Today, the police define it as a fraud case.
This group/Beijing Youth Daily reporter Cheng Wei