In China, they will begin to identify and stop the activities of organizations that work with digital cryptocurrencies. The The People’s Bank of China (Shanghai branch) reports that it will begin to carry out activities to monitor and detect organizations that operate using cryptocurrency. The main reason for such measures was the huge risks associated with the trading of digital currencies. This was initially described by the organization on the public internet site.
“In trading with digital money, there are a huge number of risks, including the risk of false assets, the risk of bankruptcy, the risk of speculation on investments and other risks. Investors need to increase their awareness and prevent these risks, as well as beware of fraud” – the regulator said.
The department noted that recently speculation with digital money has become more frequent after Xi Jinping announced the prospects for the blockchain. However, the differences between technology and cryptocurrency should be understood.
Shanghai authorities have already begun to check cryptocurrencies exchanges. Also in the city of Shenzhen, the financial regulator began an investigation on this issue. The department managed to find 39 cryptocurrencies exchanges that violated the ban on cryptocurrency trading.