China’s Peak Internet Finance Body Warns against Cryptocurrency Trading and Investment Abroad

134

The National Internet Finance Association of China (NIFA) has issued a warning against flouting the ban placed on cryptocurrency trading within China by pursing trading and investment activities via offshore platforms.

On 2 April NIFA issued the “Risk Warning on Participation in Overseas Virtual Currency Trading Platform Speculative Investment” (关于参与境外虚拟货币交易平台投机炒作的风险提示).

The Warning states that no entities or individuals in China are permitted to participate in cryptocurrency trading activities or related speculative activities, and calls for NIFA’s member institutions to strictly abide by disciplinary requirements.

NIFA said that its members should actively suppress illegal financial activity and refrain from the provision of related services, while it also called for consumers to increase their (risk awareness) and refrain from cryptocurrency speculation.

Chinese authorities first put the kibosh on cryptocurrency trading within China with the launch of a ban on ICO’s and online trading platforms in September 2017.

According to NIFA’s latest warning a number of Chinese cryptocurrency trading platforms have registered or shifted their servers overseas in order to flout domestic regulation and continue their business activities.

These platforms have stepped up their marketing to Chinese investors of late, seeking to capitalise upon the opportunities presented by the COVID-19 outbreak.

Related stories

Chi­nese Cen­tral Bank Will Trans­form Yuan into Cryp­tocur­rency: Blockchain Re­search In­sti­tute

Chi­na’s Cen­tral Bank Claims Suc­cess in Quash­ing ICO’s and Bit­coin Trad­ing Plat­forms

Bit­coin Ar­bi­trage Booms Fol­low­ing Chi­na’s ICO Ban

LEAVE A REPLY

Please enter your comment!
Please enter your name here