Bitcoin has recently plunged, almost halving in less than three months. The Financial Supervisory Commission warned today (26) that in view of the recent violent price fluctuations of virtual assets, there are reports of people with intention to commit investment fraud in the name of blockchain and virtual currency. It has also been heard from time to time, so the FSC once again made four major appeals to remind the public to prudently assess the risks of virtual assets.
Bitcoin has fallen since it hit an all-time high of $67,734 in November (2021), and has fallen to about $37,000 in less than three months, nearly halving. In the face of violent fluctuations in virtual asset prices, the FSC makes the following appeals:
1. Virtual currencies such as Bitcoin are not currencies and are highly speculative. Internationally, virtual currencies have been renamed as Crypto Assets or Virtual Assets. Governments of various countries (such as Singapore and the United Kingdom) have also repeatedly reminded the public Be aware of risks associated with virtual currency. The Central Bank of my country and the Financial Regulatory Commission jointly issued a press release in 2013, positioning virtual currency as a highly speculative digital “virtual commodity”, not a currency. In line with international views, the Financial Regulatory Commission has also issued several press releases Remind the public to pay attention to the risks of virtual currency.
2. With the exception of “Security token offering (STO)”, which is a marketable security referred to in the Securities and Exchange Law, and should comply with the relevant provisions of the Securities and Exchange Law, other types of virtual currency or related commodities derived from it, such as Options, margin trading, etc. are not financial products approved and issued by the Financial Regulatory Commission, and do not apply the existing investor protection mechanism, and the virtual currency trading platform is not an institution approved by the Financial Regulatory Commission. Therefore, ordinary investors who engage in investment and wealth management should entrust the legal securities firms, futures industry, and investment credit investment consulting industry approved by the Financial Supervisory Commission to handle them.
3. In view of the fact that the virtual asset market is prone to human manipulation or speculation, the trading information is opaque, the price fluctuates greatly, and the risk of speculation is high, the public must be vigilant, prudently judge the relevant information, and prudently evaluate before trading or privately trading through the virtual currency trading platform. Investment risk, avoid fraud or loss of life rights damage.
4. If the public finds possible fraud, they can submit relevant evidence to the 165 Quanmin Anti-Fraud Network of the Ministry of the Interior Police Department or the report mailbox of the Investigation Bureau of the Ministry of Justice.