Chinese authorities warned residents against investing in cryptocurrencies and threatened cryptocurrency exchanges with checks

Chinese authorities warned residents against investing in cryptocurrencies and threatened cryptocurrency exchanges with checks

The authorities of the Chinese city of Weihai called for caution in investing in blockchain startups, since under their guise cryptocurrency projects can be promoted. It is reported by CoinDesk with reference to the statement of the local financial regulator.

It notes that as blockchain technologies develop and advance in China, many companies begin to advertise digital currencies, while in the country since 2017, there has been a ban on cryptocurrency trading operations.

The police and the central bank branch in Weihai supported the statement and plan to conduct an audit of ICO projects and cryptocurrency exchanges.

“Some companies install servers outside of China and promote their products among Chinese investors on social networks. They usually process transactions using payment applications, so most of these funds are difficult to track and return the money, ”the statement said.

Recall that blockchain took the second place in popularity among Chinese residents in the list of the most popular words and phrases for 2019.

Such popularity of the blockchain in the PRC is explained by the appeal of the Chairman of the PRC, Xi Jinping, to take a leading position in this industry.

Chinese authorities warned residents against investing in cryptocurrencies and threatened cryptocurrency exchanges with checks