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Mutual Gold Association reminds: do not participate in virtual currency trading activities and related speculation

Mutual Gold Association reminds: do not participate in virtual currency trading activities and related speculation
Recently, the volatility of the international financial market has intensified, and some platforms have begun to hype the concept of “virtual currency is a safe-haven asset that surpasses gold and silver”, but the actual situation is that their prices have fallen sharply, causing heavy losses to consumers.The reporter learned from the China Internet Finance Association on April 2 that in response to this situation, the association issued a risk warning for speculation in foreign virtual currency trading platforms: any institution and individual should strictly abide by national laws and regulations, and do not participate in virtual currencyTrading activities and related speculation.In 2017, the People’s Bank of China, together with the Central Cyber Office, and other seven departments issued the “Announcement on Preventing the Risk of Token Issuance and Financing”, making it clear that virtual currency transactions and ICO activities are illegal financial activities, and carried out rectification work.In order to evade the regulatory crackdown, some virtual currency trading platforms have registered or set up servers overseas to continue related activities.The China Internet Finance Association pointed out that these platforms often attract consumers’ attention with various gimmicks. Instead of recent international financial market transfers, some platforms have begun to hype the concept of “virtual currency is a safe-haven asset beyond gold and silver”, while the actual situation isThe sharp drop in its prices caused heavy losses to consumers.Not only that, these platforms also use robot programs to scan, correct data and other behaviors, in order to create the illusion of “prosperity” in the virtual currency trading market.By sampling and analyzing the transaction data of some platforms, the daily turnover rate of more than 40 virtual currency transactions exceeds 100%, and the daily turnover rate of more than 70 virtual currencies exceeds 50%. It is brushed out when the unit price and market value of currency transactions are not highFor huge transaction volume, some platforms directly use rough methods to crawl information from other platforms and completely copy fake transaction volume.After inducing consumers to enter the market, the platform will use various market manipulation methods to encroach on consumer property.First, without the knowledge of consumers, the platform invades consumer property through malicious operations such as high-buy, low-sell, and high-frequency transactions.The second is that the platform uses horizontal, pull, smash and other technical means to manipulate transactions, and consumers are completely unaware of the actual transaction.The third is that the platform often stops the transaction suddenly by means of downtime, pulling out the network cable, freezing assets, etc. The consumers who participate in the leveraged transaction suffer heavy losses because they cannot actively close the position and cause the position to burst.It is understood that due to the “going to sea” operation, these platform operating entities are hidden. They change the domain name and server address of the website, and use online diversion and offline transactions to avoid the blow of the regulatory department.The location and business development area are often different. Consumers cannot determine the identity of the operator, and it is difficult to recover the property loss once it occurs.The China Internet Finance Association solemnly reminds that consumers should take the initiative to enhance their risk prevention awareness and self-protection awareness, and do not blindly follow the trend to participate in relevant speculations.The association reports that any suspected violation of the law shall promptly report the case to the public security organ.Editor Xu Chao proofreading He Yan