China Intensifies Action Against False Cryptocurrency Profiles Facilitating Unlawful Transactions
In a bid to maintain order and protect its financial ecosystem, China's cybersecurity and informatization authorities have launched a crackdown on illegal online financial activities, with a particular focus on fake crypto accounts spreading false information.
The authorities have identified and banned fake promotions and misinformation on social media platforms, issuing warnings and taking measures to stop deceptive activities. For instance, companies like JD.com have been ordered to halt fake stablecoin promotions following the proliferation of false information online.
Chinese authorities are also actively fighting against AI-generated rumors and misinformation related to cryptocurrency activities. They have publicly debunked AI-generated false claims to prevent market manipulation and misinformation.
This crackdown is part of a broader Chinese government effort to regulate and control the crypto space, especially following the ban on crypto mining and trading in 2021. Regulators are also clamping down on illegal mining and trading operations, and tackling the use of disguised online identities and deceptive tactics.
Numerous Weibo accounts have been found encouraging users to engage in virtual currency trading, while multiple accounts across WeChat, Weibo, and Kuaishou platforms have employed suggestive language to lure investors into paid groups. Accounts like "Love Stocks App" and "Value Discoverer" on Weibo and Douyin have shared misleading details regarding institutional transfer arrangements, financing, and margin trading.
The cybersecurity and informatization department has reminded netizens to establish correct investment concepts and to avoid illegal financial activities. They have urged netizens to enhance risk prevention awareness, strengthen financial information identification, and not to spread or believe rumors.
The Cyberspace Administration of China has closed more than a dozen fake crypto accounts and websites. These accounts promised insights on specific stocks, hinted at guaranteed stock trend predictions, and promoted certain stock purchases as foolproof investments. They were accused of disseminating false information about stock and cryptocurrency markets.
The authorities have not provided details about the ongoing crackdown, but they have encouraged the public to remain vigilant and report any suspected violations. They have also warned against personal property losses or information leaks.
This crackdown is a clear indication of China's commitment to stopping the spread of false crypto information and protecting its tightly controlled financial and digital ecosystem. It also indirectly influences broader regional efforts to suppress online financial scams and increase penalties for fraud, demonstrating a trend of tightening controls on crypto-related fraud and misinformation across Asia.
- The cybersecurity and informatization department is taking measures to stop deceptive activities related to investing in cryptocurrencies, particularly on social media platforms, by banning fake promotions and issuing warnings.
- Chinese authorities are combating AI-generated rumors and misinformation in the realm of financial activities, including cryptocurrency, to prevent market manipulation and misinformation.
- In the broader context, the crackdown on illegal financial activities in China, such as crypto mining, trading, and online scams, is an attempt to protect the nation's tightly controlled financial and digital ecosystem.
