The People’s Bank of China Shaoguan Branch issued a risk alert on virtual currencies and released four typical cases.
The People’s Bank of China Shaoguan Branch, in collaboration with the General Office of the Shaoguan Municipal People’s Government, issued a risk alert on virtual currencies ahead of the “4·15” National Security Education Day for All Citizens. It also disclosed four typical cases: money laundering through “high-paying U.S. dollar-pegged stablecoin (USDT) part-time jobs,” illegal fundraising under the guise of “capital-guaranteed, high-yield cryptocurrency trading,” pyramid scheme fraud involving the “RWA Digital Culture & Tourism Fund,” and offline “currency swapping” activities constituting de facto foreign exchange transactions.
Regulators clarified that virtual currency exchange, trading, and RWA tokenization activities are all illegal financial activities. Projects promising “high returns, low risk, and guaranteed profits” are mostly scams. The public should abandon fantasies of getting rich overnight, steer clear of virtual currency-related investments, opt for legitimate financial channels, and promptly report any suspicious activity to the police to minimize losses.