Shenzhen warns about illegal fundraising programs related to stablecoin

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In Shenzhen, the Special Office for the Prevention and Control of Illegal Financial Activities has issued a warning about the abuse of stablecoins for illegal fundraising, posing risks to the financial system. Authorities advise the public to be cautious and stay updated on investment opportunities.

The task force emphasizes that illegal fundraising using stablecoins could impact economic order and public safety. They urge reporting any plans related to cryptocurrencies and avoiding unrealistic promises.

Industry experts also call for clear regulations to distinguish legitimate innovations from criminal activities. Jordan Wain from Chainalysis emphasizes that stablecoins are the most common type of cryptocurrency crime and that a better legal framework is needed to mitigate risks.

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