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China’s Regulator Launched A Blockchain Anti-fraud Alliance for Investment Protection

On March 15, Beijing Internet Finance Industry Association (BJIFIA) convened a closed-door meeting to “adhere to the ban of ICOs and bring some calm thoughts about the blockchain fever”, they also launched the Blockchain Anti-fraud Alliance in the meeting.

During the meeting, Guo Dagang, the secretary general of BJIFIA; Li Lin, the founder of Huobi crypto exchange; Xu Mingxin, the founder of OKcoin crypto exchange along with the senior officers of Beijing Municipal Bureau of the Financial Work and other risk management sectors sighed with relief and joy.223ca944336c4bc8a6b07e74828c26dc

Members of the Blockchain Anti-fraud Alliance are required to follow related regulatory instructions and policies. They should also be aware of the the illegal fund-raising issues and scams to protect this emerging industry.

Guo Dagang said in an interview that: “All the members should unify understanding of this industry. We reach a consensus that, the cryptocurrency trading market is definitely immature and there are also some serious problems in the blockchain industry.”

He added that, the market entities include exchanges have technical advantages and they are familiar with the market. Thus, they should be the self-regulatory, and provide warnings of scam projects.

The Blockchain Anti-fraud Alliance has made 3 initiatives:

First of all, practitioners should strictly abide by laws and regulations and using blockchain technology appropriately to develop real-world blockchain application scenarios wihout participate in ICO or disguised ICO activities.

Secondly, the ordinary financial consumers need to distinguish the nature of “virtual currency”, ICO, and “virtual digital assets” transactions and other related trading activities. Meanwhile enhance the awareness of financial risk prevention.

Finally, the ordinary financial consumers should fully understand relevant national laws, regulations and policies, making a rational assessment of risks before investing in cryptocurrency or blockchain projects, and avoid participating in illegal trading activities includes illegal fund-raising, money laundering, fraud, and pyramid schemes.

The Beijing Internet Finance Industry Association established the Blockchain Anti-fraud Alliance on March 15 in 2018, is aiming to strengthen the self-discipline of the blockchain industry, promote a healthy and sustainable development environment of blockchain technology and relevant applications, as well as protect the legitimate rights and interests of investors.

Zou Shibin, senior officer of the Beijing Municipal Bureau of the Financial Work, also emphasized 3 main points: Enhancing risk warning for new illegal financial activities; enhancingrisk warning for ICOs and virtual currencies; and cooperating with the government in banning illegal ICOs.

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