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The Shenzhen Authorities issued the inhabitants of the warning of fraudulent financial schemes acting as stablecoin investment, because the growing interest in stablecoins attracts ruthless actors.
Key with you:
- Shenzhen warned residents of fraud that was masking as an investment in stablecoins.
- The authorities have stated that these programs often include illegal activities such as fraud and money laundering.
- Hong Kong and the US are progressing on stablecoin regulations, signaling growing global supervision.
In a Notification issued on MondayShenzhen’s Special Working Group for Prevention and Fight against Illegal Financial Activities said that some entities use buzzing such as “financial innovation” and “digital assets” to support fraud masked as legitimate opportunities.
“These entities use new concepts, such as stablecoins, to enrab the so -called investment projects including” virtual currencies “,” virtual assets “and” digital assets “, the office said.
Stablecoin fraud represents as innovative investments
The authorities warned that Stablecoin schemes often include illegal activities such as fraudulent fundraising, gambling, pyramid programs and money laundering.
Counseling comes when Stablecoins gets global attention. Mr. Gongsheng, the Governor of the Chinese Central Bank, recently acknowledged that Stablecoins and the Central Bank digital currencies transform international payment systems.
Meanwhile, Hong Kong took steps to regulate the sector, with its legislative council passed in May the Stablecoin Act for establishing a license framework for issuers.
On the International Senate International Senate last month, he advanced in the Genius Act, which is now waiting for an overview of the stable law.
Financial Secretary of Hong Kong Christopher Hui added on Monday that the city can start issuing Stablecoin licenses at the end of this year, but suggested that the approval be limited.
Hong Kong’s government last week revealed his latest policy statementIt will outline plans to accelerate the real world tokenization and the expansion of the urban crypt of licensing regime.
The new “Leap” framework focuses on legal clarity, ecosystem growth, real world adoption and Talent development of SA Stablecoin license mode set to start 1 August.
The government also plans to regulate tokenized government bonds and ETFs and prepare a way for trading in the secondary market for these products on licensed platforms of digital assets.
Its aim is to expand tokenization efforts to sectors such as metals and renewable energy, to emphasize cases of use, such as gold and solar panels.
Stablecoins are played closer to the adoption of the mainstream
Stablecoins appeared as one of the crypt’s rare stories about success and caught the attention of corporations and regulatory organs.
Recent reports that Amazon, Walmart and other major companies are investigating the salaries of Stablecoin sent by waves through traditional financing, which briefly push Stablecoin transactions before Visa in 2024.
Frank Combhay of Next Generation The above -mentioned regulatory clarityIn particular, the European scope of the mica, unlocked the growth potential of Stablecoins by removing the biggest barrier: uncertainty.
They believe that stablecoin ecosystems can reduce transaction costs by more than 90% and are increasingly attractive to consumers and corporations.
In the US, the proposed genius could mean a turning point. Passed through the Senate And waiting for a review of the house, the bill would require stablecoins to be supported by American cash registers and reflect existing models from Tether and circle.
Supporters claim that this could strengthen the dominance of the dollar in digital financing, while critics fear that this could expand the federal debt.
Contribution Chinese Shenzhen warns the public about stablecoin fraud that masks as an investment He appeared for the first time Cryptonews.
