The People's Bank of China (PBoC) has issued a strong warning about increasing risks associated with the use of stablecoins and fraudulent schemes disguised under technologies like blockchain and “financial innovation.”
⚠️ Concealed scams: “fake blockchain”
In a statement, the PBoC warns about platforms that present themselves as blockchain-based but are actually illegal financial structures — including fraudulent ICOs, pyramid schemes, and promises of unrealistic returns — designed to scam unsuspecting investors (es.wired.com, coinjournal.net).
Three common types are mentioned:
Self-exiled platforms that raise funds through unregulated payment channels.
Offers that promise miraculous returns, even outside the realm of traditional ICOs.
Models that guarantee static or dynamic income through referrals, typical of pyramid schemes.
🌐 Global concern: USDT as a criminal tool
The use of Tether (USDT) as a popular method for money laundering and scams has intensified, especially in Asia. A UN report reveals that scammers use USDT on the TRON network for illegal casino operations and romantic fraud (diariobitcoin.com).
🏦 Stablecoins: risks to the financial system
Fan Yifei, vice governor of the PBoC, has stated that global stablecoins pose serious risks to international payment and settlement systems. Although China has not detailed specific measures, the agency is already acting against the "disorderly expansion of capital" (decrypt.co).
🔍 Recommended Strategies
Beware of "financial innovation": not everything that sounds like blockchain is technologically sound.
Avoid guaranteed returns: if an offer promises fixed income without risks, it is likely fraudulent.
Authenticity and regulation: use platforms with official licenses and AML/KYC compliance mechanisms.
🧩 Ecosystem Context
China maintains strict prohibitions on crypto trading and mining, but there is a high incidence of scams and illegal schemes (coinjournal.net).
Despite this regulatory environment, Stablecoins operate in secrecy, making oversight difficult and increasing user exposure.
✅ Conclusion
China reinforces its stance: even projects with a technical appearance may be frauds designed to raise funds illegally. The call is for informed caution: use regulated channels, avoid promises that are too good to be true, and always verify the actual technological basis of any stablecoin offer.