Shenzhen's Local Financial Management Bureau Issues Warning on Risks of Cryptocurrency Trading

According to Odaily, the Local Financial Management Bureau in Shenzhen has issued a warning about the risks associated with cryptocurrency trading. The warning comes in response to a recent uptick in cryptocurrency trading activities. The bureau pointed out that some groups are using cryptocurrencies and 'overseas digital options' as a gimmick to lure the public into trading activities, disrupting economic and financial order, and breeding illegal activities such as gambling, illegal fundraising, fraud, pyramid schemes, and money laundering, seriously endangering the property safety of the people. To protect the legitimate rights and interests of the public, the Shenzhen Local Financial Management Bureau has reminded the public that cryptocurrencies do not have the same legal status as legal tender. Furthermore, activities related to cryptocurrencies are considered illegal financial activities. Those who carry out such illegal financial activities will be held criminally responsible according to the law. The bureau also stated that overseas cryptocurrency exchanges providing services to residents in China via the internet are also considered illegal financial activities. The bureau warned that participating in cryptocurrency investment trading activities carries legal risks. Any activities that violate public order and good customs are invalid under civil law, and any losses incurred as a result will be borne by the individual. If suspected of disrupting financial order and endangering financial security, the relevant departments will investigate according to the law. The warning also pointed out that cryptocurrencies lack a clear value basis and are highly susceptible to malicious speculation and price manipulation. The public is urged to enhance their risk prevention awareness to avoid becoming victims of illegal fundraising and other fraudulent activities. For those who have already participated in related trading activities, it is recommended to withdraw as soon as possible, and to collect and keep relevant evidence, and actively report to local regulatory authorities and public security organs.