Warning: Cryptocurrency Scams Are Posing as China’s Central … – CoinDesk

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.

Issuedon 15th June,the announcementsought to make public the issue, while clarifying thatthe central bank has not issued any digital currency or authorized any institution to do so. Adding to that, it reiteratedthat 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 PBoCis actively increasing its blockchain research and development, and former representatives of the institutionhave 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 [emailprotected].

View original post here:
Warning: Cryptocurrency Scams Are Posing as China's Central ... - CoinDesk