Beijing Haidian warns of risks of illegal fundraising activities under the guise of stablecoins

According to a notice from the Financial Management Bureau of Haidian District, Beijing, stablecoins, as a representative of digital currencies, have recently attracted widespread attention from the market. However, some illegal institutions are using 'financial innovation' and 'digital assets' as a guise, leveraging the characteristics of stablecoins to raise funds through the issuance of 'virtual currencies', 'virtual assets', 'digital assets', etc., misleading the public into participating in speculation, disrupting financial order, and breeding various illegal activities such as illegal fundraising, gambling, and money laundering, which endanger public property safety. The institution reminds that without permission from financial management departments, no organization may raise funds from the public. Illegal institutions are exploiting stablecoins and other means for speculation, conducting false publicity, and raising funds, leading to illegal activities. According to the regulations on (Prevention and Handling of Illegal Fundraising), the state prohibits any form of illegal fundraising, and losses are to be borne by the participants.