Prior to the implementation of new anti-fraud regulations, Chinese authorities have intensified their crackdown on cryptocurrency and other financial scams.
According to a Reuters survey, China has shut down roughly 6,000 peer-to-peer (P2P) sites as part of a purge of an industry that owed victims over $100 billion as of last August. Financial frauds are becoming more complex and widespread, according to China’s banking regulator, which called for stricter enforcement last week. Last year, China shut down over 7,500 financial scams, up 27% from the previous year.
China is set to implement new anti-fraud regulations
According to a local financial regulator who attended multiple mobilization conferences this week, the crackdown on crypto and financial scammers comes as new rules combating illicit fundraising take effect on May 1, placing the onus on local officials to eliminate investment scams at an early stage.
Previously, you asked victims to go to court. Now, victims can bring officials to court for the negligence of duty” an unidentified official told Reuters.
The crackdown, according to the official, is aimed at ensuring social cohesion ahead of the July 1 party anniversary, which is a highly sensitive occurrence.
Banks are assisting in alleged illicit cryptocurrency investment schemes
Banks are now collaborating with local governments to detect alleged illicit cryptocurrency investment schemes, according to the study. As investors pursue alternative cryptocurrencies to bet on, Filecoin trading has recently exploded in lower-tier cities. Scams involving China’s sovereign digital currency, e-CNY, have also been reported by some banks. Private equity, wealth management, and real estate investment schemes are also targets of the latest crackdown, according to the banking regulator.
The People’s Bank of China is currently promoting the use of its digital yuan. As previously announced, JD.com, one of China’s largest retailers, has begun paying its workers in digital yuan.