As the latest anti-fraud regulations start to operate on Saturday, China has toughened its war against financial scams. The crackdown aims to expose any financial crime, from fake patriotic fundraisings looking to have the most of the Communist Party’s 100th birthdays to cryptocurrency cons. Recently, the country shut around 6,000 P2P platforms in an attempt to expel an industry owing innocent investors more than 100 dollars as of August last year.
China’s financial regulator reported that financial scams keep on fluctuating in terms of widening and complexity. That is why the jurisdiction launched a crackdown to trace financial scams. As a result, they busted more than 7,500 financial frauds, 27% of the cases being from the preceding year.
The financial scam clampdown comes as the regulations suppressing illegitimate fundraising becomes effective on 1st May. With it, local officials will have to combat any rising investment scam. That is from a statement by a local investment regulator who has been attending multiple mobilization symposiums this week. What you need to know is that the official preferred to hide his identity.
The bank regulator also denoted that the crackdown was to make sure that the 1st July party incorporates social stability. Keep in mind that this is an anniversary party, which is a sensitive event.
In Shanghai, over 20 platforms were financing several TV programs devoted to the particular political event. That is against government laws. Platforms such as Zhongyan Group and Multi Accumulate were to stop those projects and apply corrective measures.
Different organizations are joining hands to track down any illegal activities in the crypto market. Local governments and Banks are cooperating to identify any crypto scam. It is according to a report by a given source.
Filecoin trading has always been flourishing whenever there are surges in bitcoin prices. That happens in undistinguished cities where traders try to find a different product to trade. Other banks have used the e-CNY digital currency to trap financial scammers.
The financial regulator noted that other areas targeted by the crackdown include the real estate industry, wealth management, and private equity. The new rules indicate a punishment to officials who do not take prompt actions in tackling financial frauds.