Beijing Internet Finance Industry Association: Beware of Illegal Fundraising Using New Concepts Such as Stablecoins

By: theblockbeats.news|2025/07/12 19:11:59

BlockBeats News, July 11th. Recently, various types of digital currencies and related concepts represented by "stablecoins" have attracted market attention. Some illegal institutions and individuals, under the guise of "financial innovation," "blockchain technology," "digital economy," "digital assets," and other buzzwords, take advantage of the public's limited understanding of new financial concepts. They do so by issuing or hyping the so-called "virtual currency," "digital assets," "stablecoin investment projects," promising high returns, and inducing the public to invest funds in trading and speculation.

This type of activity has significant characteristics of illegal fundraising:

1. Lack of Qualifications: These institutions or individuals have not been approved or filed with the financial management department of the State Council in accordance with the law, and do not have the legal qualifications to accept public deposits, sell financial products, or issue securities.

2. Conceptual Packaging: They use emerging and complex concepts such as "stablecoin," "Decentralized Finance (DeFi)," "Web3.0" for packaging and speculation, deliberately creating information asymmetry to mislead investors.

3. False Promises: There is widespread exaggeration and false promises, such as "guaranteed profits," "high fixed returns," "principal guaranteed interest," exploiting the public's desire for high returns.

4. Fund Pool Operation: Their operation model often relies on attracting new investors' funds to maintain operation or pay early investors' returns. Once the fund chain breaks or the project party absconds, investors will face a huge risk of being unable to recover their principal.

5. Risk Contagion: Such activities are prone to evolve into illegal fundraising, financial fraud, pyramid schemes, money laundering, and other criminal activities, severely disrupting the economic and financial order, infringing on the property security of the people, and damaging the social credibility foundation.

The Internet Finance Industry Association of Beijing Municipality solemnly reminds and urges the general consumers: Be sure to recognize the essence, be highly vigilant of any investment projects that promise high returns and principal guarantees. Always remember that "high returns always come with high risks"; before investing, be sure to verify through official channels of the national financial management department the legal qualifications of the relevant institutions and products, choose licensed and regular financial institutions; fully understand the high complexity and volatility of "stablecoins" and other digital currencies and related innovative concepts, establish the correct concept of money and a rational investment philosophy; consciously resist and stay away from any form of virtual currency speculation, illegal token issuance, and unauthorized "digital asset" investment projects, effectively protect personal property security. If you discover related clues of illegal fundraising, please report them immediately to the financial regulatory authorities, public security departments, or this association.

-- Price

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Beijing Internet Finance Industry Association: Beware of Illegal Fundraising Using New Concepts Such as Stablecoins

-- Price

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