Since the beginning of the month of May, the Chinese regulatory authorities have been actively taking down illegal cryptocurrency activities in the country. The regulatory authorities have been carrying out constant crackdowns against cryptocurrencies.
After the recent crackdown events, the financial regulators from Hainan have become active against the illegal activities of cryptocurrencies. Hainan is the smallest Chinese province and is also showing great interest and dedication in cracking down against illegal cryptocurrency tokens.
The regulatory authority from the Hainan province has recently issued a warning for the investors in the particular region. In the warning, the regulatory authority has tried to make the investors aware of the risks involved in cryptocurrencies.
The regulatory authority has tried reminding the investors about the fake and fraudulent schemes for fundraising. The authorities are focusing to get the attention of the investors towards illegal schemes being plotted by scammers in the form of fundraising.
Ever since the beginning of the year 2021, the cryptocurrency and blockchain industry has skyrocketed. Looking at the potential, many new firms have come into being within the crypto-blockchain universe.
While some firms are launched by giant crypto-blockchain firms needing no such funding, the majority of the firms need funds for their startup. This is when such firms launch decide to launch a fundraiser by presenting their ideas to the venture capital firms interested to invest in new crypto-blockchain projects.
As China is considered one of the largest hubs for cryptocurrencies, therefore, the hub is home to many cryptocurrency and blockchain projects. The hub provides startups to many crypto-blockchain firms and therefore, it is also one of the most common playgrounds for scammers and fraudsters.
Over the course of time, several Ponzi schemes, fake fundraising rounds, and other illegal crypto-blockchain-related activities have originated from this hub.
Therefore, the regulatory authorities in China want their public to be well aware of the fact and deal with it vigilantly and attentively.
The reports reveal that the People’s Bank of China’s main branch in the Hainan Province has issued a warning for its investors. The People’s Bank of China was not the only regulator in the Hainan Province to embark on this journey of public awareness.
The People’s Bank of China was also accompanied by the local financial Supervisory Authority of the Hainan Province in issuing a warning. Both regulatory authorities joined hands in an effort to intimate the investors in the particular region.
The regulatory authorities have reminded the investors and cryptocurrency firms in the province about the illegal activities. They have reminded the investors about the campaigns being launched for raising funds for different crypto-blockchain projects. They have reminded them that such activities of financing and issuing illegal tokens are completely forbidden.