Financial departments in many places have issued risk warnings to guard against illegal fundraising with stablecoins

PANews reported on July 13 that according to the Shanghai Securities News, the "Suzhou Finance" public account issued a "Risk Warning on Illegal Fund Raising in the Name of "Stablecoins", etc." In the risk warning, the Suzhou City Office of the Working Mechanism for Preventing and Combating Illegal Financial Activities reminded consumers that virtual currency does not have the same legal status as legal currency, virtual currency-related business activities are illegal financial activities, and overseas virtual currency exchanges providing services to residents in my country through the Internet are also illegal financial activities. There are legal risks in participating in virtual currency investment and trading activities. Subsequently, WeChat public platforms such as the "Ningxia Anti-Illegal and Anti-Illegal Office" and the "Chongqing Anti-Illegal Office" successively issued similar risk warnings on being vigilant against illegal fundraising in the name of stablecoins, etc.

According to previous news, the WeChat public platform of the Beijing Internet Finance Industry Association also recently released the "Beijing Internet Finance Industry Association's Risk Warning on Being Wary of the Use of New Concepts Such as "Stablecoin" for Illegal Fund Raising", analyzing that such activities have five significant illegal fundraising risk characteristics.