Warning: Cryptocurrency Scams Are Posing as China's Central Bank

The People’s Bank of China (PBoC) has issued a new warning alleging that cryptocurrency projects are misusing its name in an effort to defraud investors.

Issued on 15th June, the announcement sought to make public the issue, while clarifying that the central bank has not issued any digital currency or authorized any institution to do so. Adding to that, it reiterated that there is no digital currency marketing team at the PBoC, nor does the institution consider applications of the technology legal tender.

The PBoC went so far as to warn Chinese consumers that so-called “digital currencies issued by PBoC” could be a part of a pyramid scheme.

The PBoC concluded that:

“We call on the public to establish a correct concept of money, cherish the RMB and maintain a normal circulation of RMB together.”

In broader context, the comments are the latest that find China’s central bank stepping up its regulation of the cryptocurrency sector. (Earlier this year, it sought to aggressively police domestic exchanges amid a surge in the bitcoin price.)

Lending plausibility to the scams, they also come at a time when the PBoC is actively increasing its blockchain research and development, and former representatives of the institution have begun to up about the technology and its potential impact.

RMB image via Shutterstock

The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. Have breaking news or a story tip to send to our journalists? Contact us at [email protected].

Comments

comments

Filed in: Bitcoin Buzz Tags: ,

You might like:

The Gentrification of ICOs Is Underway The Gentrification of ICOs Is Underway
Even Investors with Access Want ICO Presale Reform Even Investors with Access Want ICO Presale Reform
Millions Gone? Broker Takes Fire for Bitcoin Cash Freeze Millions Gone? Broker Takes Fire for Bitcoin Cash Freeze
First Long-Term LedgerX Bitcoin Option Pegs Price at $10,000 First Long-Term LedgerX Bitcoin Option Pegs Price at $10,000
First Long Term LedgerX Bitcoin Option Pegs Price at $10,000 in One Year First Long Term LedgerX Bitcoin Option Pegs Price at $10,000 in One Year
Mike and Nathaniel’s Week in Tech: Everybody Loves Bitcoin Mike and Nathaniel’s Week in Tech: Everybody Loves Bitcoin
ICOs on Our Terms and Conditions ICOs on Our Terms and Conditions
Fork talk lifts bitcoin to all-time high near $8,000 Fork talk lifts bitcoin to all-time high near $8,000
© 2017 Virtual Mining Bitcoin News. All rights reserved. XHTML / CSS Valid.