China Judgements Online Data Shows Crypto Asset-Related Lawsuits Nearly Doubled in 2018
According to data provided by China Judgements Online, an online database that shows Chinese court documents, half of the lawsuits related to virtual currencies were filed in 2018. This shows how the crypto ban in China played a limited role in trying to avoid crypto-related scams in the market.
As per China Judgements Online, there were 202 crypto scams operational in China in 2018. These fraudulent companies were promoted on many different platforms. Most of these scams were related to a pyramid or Ponzi schemes.
During 2017 and 2018, several virtual currency projects and Initial Coin Offerings (ICOs) were released to the market. Several of them were simply scams that tried to take advantage of the large number of projects being released to the market.
China has banned ICOs and virtual currencies back in 2017 in order to avoid further problems. South Korean authorities took a similar decision without banning the whole crypto market.
Li Lihui, the head of the National Internet Finance Association, commented:
“On the platform of the virtual currency exchange, the market value of stablecoins is hundreds of millions of dollars. But some stable currency accounts are not transparent enough, and there is no authoritative supervision, there is a risk of trust.”
Different countries have taken different measures to fight against fraudsters in the crypto market. Japan has been very strict with the policies and measures that were taken but always having an open doors policy towards virtual currencies and blockchain technology companies.
Malta and Switzerland have also been trying to offer a clear regulatory framework for companies to operate in the market. Analysts are wondering how China will be regulating the space in the future and if there is a possibility to see more flexible regulations.