Beijing Internet Finance Industry Association: Beware of illegal fundraising using stablecoins and other new concepts.

Techub News reports that the Beijing Internet Finance Industry Association has stated that recently, various types of Digital Money represented by "stablecoin" and related concepts have attracted market attention. Some illegal institutions and individuals, under the guise of "financial innovation," "Blockchain technology," "digital economy," and "digital asset," exploit the public's limited understanding of new financial concepts, by issuing or speculating on so-called "Virtual Money," "digital asset," and "stablecoin investment projects," promising high returns and enticing the public to invest funds in trading speculation.

The Beijing Internet Finance Industry Association stated that such activities have significant characteristics of illegal fundraising risk, including lack of qualifications, concept packaging, false promises, operation of funds pools, and risk spillover. It calls on consumers to recognize the essence, be highly vigilant against any investment projects that promise high returns and capital protection, and remember that "high returns are inevitably accompanied by high risks"; before making investment decisions, it is essential to verify the legal qualifications of relevant institutions and products through official channels of national financial regulatory authorities and to choose licensed formal financial institutions; fully understand the high complexity and volatility of digital currencies such as "stablecoins" and related innovative concepts, and establish a correct currency concept and rational investment philosophy; consciously resist and stay away from any form of virtual money speculation, illegal token issuance, and unapproved "digital asset" investment projects, and effectively protect personal property safety. If any clues about illegal fundraising are found, please report them immediately to the financial regulatory authorities, public security departments, or this association.