BFIA Releases Notice, Warns About Risks Of Virtual Currency As Market Warms up

Beijing Internet Finance Industry Association (BFIA) released a notice on June 28 titled,

“Risk warnings about continuing to be vigilant in investing in the virtual currency market.”

In this notice, the association, not a government department, that is established by dozens of company from the internet finance industry stated that the current scenario of the international virtual currency market is warming up once again.

This has some companies like Algorand project, DVS publicizing their virtual currency under the guise of academic research promotion and “confuse domestic investors to participate in virtual currency transactions.” The ICOs and ICO variants continue to conduct cross border financial activities as well.

Moreover, perpetrators are claiming that “the currency value is rising again” and that “the investment period is short, the income is high, and the risk is low,” which in practice is actually manipulated by criminals, to attract investors and illegally profit, states the notice.

This month, Bitcoin has risen from around $8,400 to $13,900 before taking a drop and currently trading at $11,744. Since April, BTC/USD has been surging, recording more than 190 percent gains in the past 90 days.

“Do not blindly follow the trend, always be alert to speculative risks and avoid loss of property,”

advises the Association.

Reiterating the 2017 ICO ban and other warnings, BFIA said IEO, IFO, IMO and others are of extreme risks that use ‘“financial innovation” as the gimmick.” Most of these fundraising, it says are not really based on blockchain technology rather are speculative, pyramid schemes, and frauds.

BFIA urges the relevant companies to strictly abide by the laws and regulations and report to the financial regulatory authorities or industry association if anyone finds any organization involved in such illegal financial activities.

“The Association advocates that members and social institutions should strengthen self-discipline, resist illegal financial activities, and not participate in any “ICO” and its variants or speculative “virtual currency” illegal financial activities.”

As reported, it’s just an association’s warning notice and is not a law or regulation.