Blockchain: cases of fraud and illegal currencies increase

07/07/2018

 

Illegal fundraising activities and financial crimes in Beijing are on the rise

 

The Beijing Municipal People’s Procuratorate released a new white paper on financial crimes. According to data, crime in Beijing is increasing. According to the white paper, not only did the number of fraud cases increased, but the scale and spread of these crimes also escalated.

Furthermore, among these crimes, cases of fraud linked to crypto currencies and blockchain have also increased. In 2017, prosecutors across Beijing arrested 1342 people in 889 financial crime cases and filed charges against 1480 people in 820 financial crime cases.

 

Huaqiang Coin and Wuhang Coin are examples of fraudsters using “digital currency” as a cover to attract investors

 

There are still many issues and controversy surrounding financial crime cases, according to to Jiang Shuzhen, the director of financial crimes department at Beijing Municipal People’s Procuratorate.

According to the director, to avoid these crimes there must be clear rules in particular on internet finance, crypts, blockchain and other emerging areas in the financial sector. Jiang also noted that financial regulations in these emerging fields relatively slow.

 

According to Jiang Shuzhen, to avoid these crimes there must be clear rules in particular on internet finance

 

Illegal fundraising activities using buzzwords like “blockchain” and “crypto” to scam investors is still becoming a growing problem in China. And it is for this reason that China has stepped up its measures to curb the crypto and blockchain scams.

According to the National Committee of Experts on the Internet Financial Security Technology,  a total of 421 fake cryptocurrencies has been found as of April 2018. The problem is that 60% of these currencies have been distributed abroad, so it becomes difficult to find.

 

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