The website found that the scams were promoted across more than 3,000 different platforms and noted a significant increase in the number of pyramid schemes ostensibly associated with cryptocurrency over the last two years.
According to China Judgements Online, approximately half of the 406 lawsuits relating to cryptocurrency that have been filed in China since 2014 were filed last year. The data highlights the increase in fraudulent activity pertaining to virtual currency following the highly publicized cryptocurrency boom of 2017, despite China’s regulatory efforts.
Li Lihui, the head of the state-backed National Internet Finance Association – a self-regulatory organization that collaborates with the People’s Bank of China and “relevant ministries and commissions” – recently emphasized concerns pertaining to the transparency of stablecoins while speaking at an event hosted by Tsinghua University.
“On the platform of the virtual currency exchange, the market value of [stablecoins] is hundreds of millions of dollars. But some stable currency accounts are not transparent enough, and there is no authoritative supervision, there is a risk of trust,” Lihui stated.
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