Beijing warns against using NFTs and metaverses
The Beijing Municipal Finance Bureau has warned investors to be on the lookout for fraudulent Web3 projects that are into illegal fundraising and other criminal activities.
Despite the launch of the state-owned NFT marketplace, the regulator continues to warn local residents to stay away from extremely risky modern investment tools. The document states:
We must establish a rational concept of investment and financial management, never believe lies about βguaranteed profitsβ, and βzero risk, high returnsβ. We should keep in mind that high returns are always accompanied by high risks.
Emphasizing that money does not just fall from the sky, the Bureau suggests following three basic rules:
1. Before investing your money, find as much information about the company and its assets as you can. You should check if this company has a license to work with asset management products and real estate. Companies should also have a work permit issued by the financial management department.
2. Always be aware of the security of your data. The regulator points to such processes as signing financial and investment management agreements with banking institutions and insurance companies, signing empty contracts, and presenting identity cards, bank cards, numbers, passwords, and verification codes. The bureau also urges not to follow unfamiliar links and not to scan dubious QR codes.
3. Be alert to new patterns of illegal fundraising activities and resist being swayed by hype and speculation. Beijingβs regulator directly calls new investment projects a scam.
Source: finance.sina.cn
Bureau experts have urged investors to stay alert about the new warnings and report suspicious projects to authorities.
China implemented a full ban on crypto in 2021. At the same time, the government tries to promote innovation by launching the state-owned NFT marketplace in 2023.
At the beginning of this month Huang Yiping, a former advisor to the Peopleβs Bank of China (PBOC), said that by constantly refusing innovation China is losing next-generation fintech systems like blockchain.
