China’s Shenzhen Warns: Stablecoin Scams Are the New Ponzi Schemes! 🚨💰

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A Chinese task force has issued a warning to Shenzhen residents about fraudulent investment schemes targeting stablecoins, the new darlings of the digital world. 🌟

Growing Stablecoin Popularity

A Chinese task force, tasked with the noble mission of combating illicit financial activities, has warned Shenzhen residents to be wary of fraudulent investment projects that prey on the public’s limited understanding of stablecoins. In an alert issued on July 7, the Shenzhen Municipal Task Force Office for Preventing and Combating Illegal Financial Activities suggested that fraudsters are increasingly targeting stablecoins, thanks to the widespread attention these digital wonders have garnered recently. 🤑

//news.bitcoin.com/digital-currency-showdown-chinese-tech-giants-plot-yuan-stablecoin-strike-against-the-dollar/”>reported

that two major Chinese tech giants are actively lobbying Beijing for authorization to issue yuan-based stablecoins. This move signals a potential shift in approach, indicating that while general cryptocurrency activities remain restricted, there’s a growing interest in leveraging stablecoins for China’s own financial and geopolitical objectives, particularly in promoting the internationalization of the yuan. 🇨🇳💰

Meanwhile, the Shenzhen task force reminds prospective stablecoin investors that institutions engaged in this practice are operating illegally because they lack the required approvals. It’s like trying to open a bakery without a health permit—sure, you might get some customers, but the health department will shut you down in no time. 🍞🚫

“The Office of the Municipal Task Force for Preventing and Combating Illegal Financial Activities reminds you: Such illegal institutions are not qualified to publicly absorb public deposits without the approval of the national financial management department in accordance with the law or in violation of national financial management regulations,” the task force warned, with all the charm of a stern schoolteacher. 📜🚫

Besides hyping stablecoins, the illegal institutions are also accused of “fabricating” virtual currency or digital assets and other investment projects. In addition, the institutions face allegations of absorbing public funds without the requisite permissions, illegal fundraising, gambling, fraud, and pyramid schemes. It’s a veritable smorgasbord of financial misdeeds, all wrapped up in a digital bow. 🎁🚫

The task force also reiterated that under China’s Regulations on Preventing and Dealing with Illegal Fund Raising, investors in fraudulent fundraising schemes have no legal recourse; therefore, any losses incurred will be borne by the participating investors. It also advised investors to report institutions operating illegally to the public security department in a timely manner. In other words, if you get scammed, you’re on your own, so be smart and stay vigilant! 🕵️‍♂️🚨

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2025-07-08 01:13