Preventing illegal fund raising of virtual currency
1. The price fluctuates violently and the consumer protection is lacking:
virtual currency is the proct of network, and the digital information flowing in the network is beyond the control of all people. The code of cyberspace is the basis of the operation of virtual currency, investors can only operate through the front-end interface, seemingly "control" the virtual currency. The operator of the virtual currency service organization may become the actual controller of the virtual currency through the control code<
2. Avoiding supervision and becoming the "accomplice" of criminal activities
virtual currency transaction is not protected by law:
virtual currency transaction is not illegal, and it is not illegal to invest in virtual currency. But how to get involved in virtual currency transactions is illegal and illegal. It may be suspected of illegal fund-raising.
Cheng tycoons use virtual currency to launder money, which is illegal fund-raising. Let's first understand the definition of illegal fund-raising on the Internet. Illegal fund-raising is a kind of criminal activity. It means that an entity or indivial raises funds from the public by issuing stocks, bonds, lottery tickets, investment funds, securities or other debt certificates without the approval of relevant departments in accordance with legal proceres, And promise to repay the principal and interest or give return to the investor in money and other ways within a certain period of time. And in China, it is clearly stipulated that investment in virtual currency is illegal, and the circulation and transaction of virtual currency is explicitly prohibited{ RRRRR}
One is to block the "going to sea" virtual currency trading platform. As of May 2018, 110 websites, including hot coin.com and coin.com, have been blocked
Fourthly, risk warning and public opinion guidance should be actively carried out. Together with the China Internet Finance Association, we remind the public to be highly alert to the risks and hazards of virtual currency related activities through various channels and forms Fifthly, we should actively support and cooperate with the public security organs to crack down on all kinds of fake virtual currency and related illegal fund-raising, fraud, pyramid schemes and other activities. According to the statistics of public security organs, in recent years, nearly 300 cases of virtual currency crimes have been filed and investigatedThere are two reasons for the prohibition of virtual currency trading by the state:
1. The price fluctuates violently and the consumer protection is lacking:
virtual currency is the proct of network, and the digital information flowing in the network is beyond everyone's control. The code of cyberspace is the basis of the operation of virtual currency, investors can only operate through the front-end interface, seemingly "control" the virtual currency. The operator of the virtual currency service organization may become the actual controller of the virtual currency through the control code
bitcoin and other so-called "virtual currencies" lack a clear value basis, the market is full of speculative atmosphere, the price fluctuates violently, and investors blindly follow suit, which is easy to cause capital losses
2. Evade supervision and become the "accomplice" of criminal activities:
bitcoin is popular as a payment tool in the so-called "dark web" world“ The "dark net" is full of all kinds of serious criminal activities. One of the original intentions of the invention of bitcoin is to evade regulation. It has the characteristics of anonymity and convenient cross-border flow, and has become the preferred tool of "underground economy"
the existence of bitcoin and exchanges and other instrial chains has constructed a illegal financial market for asset transfer and financing in addition to legal currency, increased the difficulty of regulatory authorities in managing financial security and stability, and promoted regulatory arbitrage and financial crimes. The risks and social security risks it brings to the financial market are far higher than its innovative value
extended information
virtual currency transactions are not protected by law:
according to the notice on preventing bitcoin risks issued by the people's Bank of China and other departments on December 3, 2013 and the announcement on preventing financing risks of token issuance issued by seven ministries and commissions including the people's Bank of China on September 4, 2017, virtual currency is not issued by monetary authorities, It is not a real currency because it does not have the monetary attributes of legal compensation and compulsion
in terms of nature, virtual currency should be a specific virtual commodity, which does not have the same legal status as currency, and can not and should not be used as currency in the market. Although citizens' investment and trading in other virtual currencies are personal freedom, they can not be protected by law
tips from China Banking and insurance Regulatory Commission, the central information office, the Ministry of public security, the people's Bank of China and the State Administration of market supervision using the hot concept to hype, fabricating a variety of "tall and high" theories, and some also using celebrity big V "platform" publicity, taking airdrop "candy" as temptation, claiming that "currency value only rises but does not fall", "short investment cycle, high income, low risk", has strong bewitching. In practice, criminals illegally make huge profits by manipulating the price trend of the so-called virtual currency, setting profit and withdrawal threshold. In addition, some criminals also issue tokens under the guise of ICO, IFO, IEO, etc., or hype virtual currency in the way of IMO under the banner of sharing economy, which has strong concealment and confusion
this kind of activity takes "financial innovation" as a gimmick, and its essence is the Ponzi scheme of "borrowing the new to repay the old", so it is difficult to maintain the capital operation for a long time. The general public should treat the blockchain rationally, not blindly believe the promises, establish a correct monetary concept and investment concept, and effectively improve the risk awareness; We can actively report to the relevant departments the illegal and criminal clues found
source: China Bank Insurance Regulatory Commission
"Financial crimes in the name of Internet finance are becoming more and more serious." Jiang Shuzhen, director and prosecutor of the economic crime Department of the Beijing municipal procuratorate, told reporters that in recent years, the number of cases of building self financing platform in the name of P2P and issuing false credit transfer projects to finance themselves has increased year by year, and the harm has become more and more serious. In addition, illegal fund-raising in the name of virtual currency and blockchain also began to appear
According to Jiang Shuzhen's analysis, there are still some problems in financial crime cases, such as difficult investigation and evidence collection, and many disputes on the application of law. For example, in the case of illegal fund-raising, the amount of evidence collection is large, cross regional evidence collection is difficult, and there are disputes between crime and non crime, indivial crime and unit crimein addition, the regulation of financial laws and regulations on new financial formats such as Internet finance is relatively backward. Jiang Shuzhen, for example, in recent years, there have been illegal and criminal activities such as "Huaqiang coin" and "five element coin" with virtual currency as a gimmick. On September 4, 2017, the central bank and other seven ministries and commissions jointly issued the "notice on preventing the risks of token issuance and financing", which timely reminded the public to be alert to the risks of token issuance and financing and transactions, and achieved good results. But what is the meaning of token, There is a lack of law enforcement norms to regulate the illegal issuance of securities, illegal fund-raising, financial fraud, pyramid schemes and other illegal activities. In view of the problems exposed in Internet finance, blockchain and other new formats, we should improve the relevant laws and regulations as soon as possible to promote the effective connection between administrative law enforcement and criminal justice
content source: Red Star News
First, fully recognize the harm of illegal fund-raising, and keep their own psychological defense. We should improve our recognition ability, consciously resist all kinds of temptations, firmly believe that "there will be no pie in the sky", "no free lunch", and abandon the fluke mentality of taking advantage and "I'm not the last stick"
we should always be vigilant to the projects of "high return", "get rich quickly" and "high return of points". We should ask our neighbors more, or check with the relevant departments to avoid being cheated
The second is to establish a correct concept of financial management and investment. High income is often accompanied by high risk, so is financial management. There are always profits and losses. There is no business that can make a steady profit without losing money. Especially some non-standard economic activities contain great risks. We must enhance rational investment awareness, choose legal investment channels, and prevent being cheated by all kinds of illegal fund-raising The third is to strengthen the awareness of risk bearing. China's relevant laws clearly stipulate that the losses incurred by participating in illegal financial activities shall be borne by the participants themselves. Therefore, once caught in the trap of illegal fund-raising, the interests of participants are not protected by law
extended materials:
identification methods
the forms of illegal fund-raising are diverse, and the concealment and deception are more and more strong. Suggestions on how to identify and prevent illegal fund-raising are put forward by relevant departments:
first, recognize the nature and harm of illegal fund-raising
Secondly, the correct identification of illegal fund-raising activities mainly depends on whether the subject qualification is legal and whether the fund-raising activities they are engaged in are approved Third, strengthen the sense of rational investment. High income is often accompanied by high risk, and non-standard economic activities contain huge risks. Therefore, we must strengthen the sense of rational investment and protect our own rights and interests in accordance with the law Fourthly, we should enhance the awareness of taking risks in illegal fund-raising. Illegal fund-raising is an illegal act, and the funds and related interests invested by participants in illegal fund-raising are not protected by law. Therefore, when some units or indivials peddle high interest deposits, stocks, bonds, funds and development projects with high investment returns, they must carefully identify and invest cautiouslythe public security organs remind the masses that they must be alert in case of "investment" or "financial management" projects under one of the following circumstances:
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4. Under the guise of private equity or partnership, but without business registration
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6. Under the guise of "poverty alleviation", "charity" and "mutual assistance"
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To attract the elderly by organizing investigation, tourism, lectures, etc9
10. The investment fund is required to be paid in cash or to indivial account or overseas account
source of reference: Internet - illegal fund raising