Shenzhen Warns Against the Resurgence of Illegal Activities Owing to the Promotion of Blockchain Technology

According to a report, the Shenzhen Municipal Bureau of Local Financial Supervision said that the Office of the Leading Group for Special Remediation of Internet Finance Risks in Shenzhen has warned about the seeming resurfacing of illegal activities as a result of interest in cryptocurrency, and thus, the office noted that it would begin conducting investigation and collecting evidence of any form of unlawful activities. Offenders have been warned that they will face penalties as dictated in the "Announcement on Preventing the Risk of Subsidy Issuance of Financing."

The report noted that since the publication of the risk warning in 2017, tagged: "Announcement on Preventing the Risk of Subsidy Issuance Financing," there was a significant reduction in illegal activities of digital assets, and also, effective control of relevant financial risks was achieved. 　

However, there is a high risk of a resurgence of illegal activities since speculation about digital currency is on the rise, backed by the promotion of blockchain technology.

The illegal financial activities outlined by the office include: the organization of digital currency transactions in the name of blockchain innovation with grounded application, the issuing of digital currency in the form of virtual coins and  chains, the publishing of white papers, the raising of funds through ICO projects, and exchange trading platforms, etc.

The Office of the Leading Group for Special Remediation of Internet Finance Risks has hoped that investors will be careful against the illegal financial activities. They also urged them not to fall victim and also try to report violations in time.

Image via Shutterstock