It is imperative for the currency circle trading platform to thunder frequently and strengthen the supervision of virtual currency
Our reporter Xing Meng
The currency circle has not been calm recently. In the last week alone, several virtual currency trading platforms such as PIEXGO, UEX, LMEX, and FUBT have been questioned to "run the road." Although various platforms have clarified that it is only due to technical reasons, hacking and other factors to temporarily withdraw cash, the depth of the currency circle is well-known. It is difficult to dispel investors' doubts by relying on a piece of clarification.
Following the cessation of domestic ICOs in 2017, virtual currency trading platforms have developed "out to sea". Since then, "people and servers are overseas, and sources of funds are in the mainland." It has become a new routine for many trading platforms. This has further increased the difficulty of investigating and punishing relevant illegal activities by the regulatory agencies, and has also provided convenience for the platform to run. In the context of stricter regulations, although the virtual currency transaction has not "turned off", the chaos in the currency circle is still a serious threat to investors' property security.
In fact, the regulators have long warned of risks in various routines of the virtual currency trading platform.
On March 22 this year, the official micro signal of the People's Bank of China published an article titled "3.15 Financial Consumer Rights Protection", which emphasized that you should not be fooled by the virtual currency trading platform. The article said that the criminals' virtual currency trading platform moved the server overseas, and still provided trading services to domestic investors. Many investors were dreaming of realizing "one night's riches" by investing in virtual currencies, but they did not know that they were eventually deceived by criminals. Go for money.
On April 2nd, the China Internet Finance Association also issued a risk alert, detailing the "going to sea" routine. Mutual Gold Association reminded that because of the “going overseas” operation, the main operating entities of these platforms are relatively hidden. They frequently avoid changing the domain name and server address of the website, and adopt online diversion, offline transactions, etc. The registration place, office place and business development area are often different. Consumers are often unable to determine the identity of the operator. Once property damage occurs, it is difficult to recover.
In response to the specific fraud, the People's Bank mentioned in the above article that the virtual currency trading platform has large transaction volume and high popularity, which are just superficial data, and there are three built-in routines: First, the transaction data is falsified to create an artificially high transaction volume and attract investment Second, the malicious “downtime” forced the leveraged transaction to explode and manipulate the market; third, the virtual currency has become a money laundering tool for criminals, with greater social risks. The People's Bank reminded that to avoid falling into the trap of virtual currency, it is necessary to bear in mind "to report the first time." The mutual financial association also reminded that "if any institution is found to be involved in such illegal financial activities, it should be reported to the relevant regulatory authorities or the China Internet Finance Association in a timely manner. Anyone suspected of illegal crimes should report to the public security organ in a timely manner."
Even so, we can see that many investors still do not give up. Some investors believe that the trading platform they invest in belongs to the head company and is safe and secure. However, whether it is a trading platform or a large number of self-media platforms surrounding the trading platform, how to “advocate” the “investment opportunities” of the virtual currency in order to attract more investors to “board”, but from the perspective of the trend, "Extremely high risk and extreme volatility" is the standard configuration of cryptocurrency, and "going to zero" is the return of most currencies.
In this situation, it is imperative to strengthen the supervision of virtual currency from the level of policies and regulations. Gong Fuwen, a member of the National Committee of the Chinese People's Political Consultative Conference and vice president of the Shaanxi Provincial People's Court, proposed that the supervision of digital tokens should be strengthened on the rule of law. In last year's proposal, Gong Fuwen proposed that digital tokens be strictly prohibited to prevent and resolve financial risks. Legislation should be passed to make it clear that digital tokens are not digital currencies. In this year's proposal, Gong Fuwen once again issued a "strict supervision" call, suggesting that it is urgent to issue digital token supervision rules, strictly regulate blockchain project financing, strictly prohibit digital token issuance transactions, maintain financial order, and prevent financial risks .
For investors, they should recognize the truth behind the false prosperity of virtual currency transactions in a timely manner, and do not blindly participate in virtual currency trading activities and related speculations to avoid financial losses. (Securities Daily)