PANews reported on July 7 that the Shenzhen Office for Prevention and Combating Illegal Financial Activities issued a "Risk Warning about Guarding against Illegal Fundraising under the Guise of Stablecoins". Recently, digital currencies represented by stablecoins have attracted widespread market attention. Monitoring has discovered that some illegal institutions use "financial innovation" and "digital assets" as gimmicks, taking advantage of the public's insufficient understanding of stablecoins, absorbing funds by issuing so-called "virtual currencies", "virtual assets", and "digital assets", inducing the public to participate in trading and speculation, disrupting economic and financial order, and breeding illegal activities such as illegal fundraising, gambling, fraud, pyramid schemes, and money laundering, which seriously endanger public property safety. The Shenzhen Office for Prevention and Combating Illegal Financial Activities warns: Such illegal institutions have not obtained legal permission from national financial management departments or have violated national financial management regulations, and do not have the qualification to publicly absorb public deposits. These institutions use new concepts like stablecoins for speculation, fabricating so-called "virtual currency", "virtual asset", and "digital asset" investment projects, publicly spreading false propaganda and absorbing public funds, breeding illegal activities such as illegal fundraising, gambling, fraud, pyramid schemes, and money laundering.
