Shenzhen crypto warning against illegalities surrounding the cryptocurrency in the country will be investigated by the Leading Group for the Remediation of Internet Finance Risks.
Eastmoney, an indigenous news source, announced the Shenzhen crypto warning on November 21, highlighting the cause of the increasing fraudulent deeds on the approval of blockchain technology by the current administration.
Shenzhen crypto warning following President Xi Jinping’s endorsement
Since the ban of Initial Coin Offering in 2017, the unlawful activities with digital currency in the state reduced to the barest minimum, the Leading Group explained.
However, the President’s acceptance of blockchain technology has tossed the crypto criminal activities on the increase. The regulator also reported that the increased illegalities arose together with the cryptocurrency forecast.
The Shenzhen crypto warning cited some irregular undertakings in the industry as raising funds in crypto or fiat, issuing initial coin offerings, and crypto-assets.
The evidence accumulated by the regulator body will drive the implementation of actions against the criminal activities in the industry, as reported by Eastmoney publication “Announcement on Preventing the Risk of Subsidy Issuance of Financing.”
Following the approval of the technology by the President, public interest in the digital coin has increased, and about 32,000 organizations in the country have subscribed to using the technology.
In the real world, only about 10 percent of the companies have adopted the technology, while the remaining number of firms exploit the hype around blockchain to market their company.
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