Chinese Watchdog found 421 Scams in Cryptocurrencies

Digital assets space has envolved huge media coverage with reports, focused on the scams: investors are fleeced with the bait of returns or a fraudulent scheme
22 May 2018   1123

The National Internet Financial Risk Analysis Technology Platform (IFCERT) published a statement on May 18, 2018 in order to educate its citizens on common cryptocurrency scams, defining the space’s common scams. During the investigations, the IFCERT’s revealed a common of 421 cryptocurrencies, all displaying attributes of a fraudulent business model. Nevertheless, the watchdog affirms that most of the trading platforms are hosted on overseas servers, making it difficult to track their exact location. The fraud platforms, in the whole, were parted  into broad divisions.

Promoters of Pyramid Scheme Cryptocurrencies provide a bogus guarantee of significant yields and claim to offer handsome commissions to investors who can further bring in more investors. As demonstrated below, the top-tier members make the most profits, with the incentives decreasing as one trickles down the pyramid. In terms of benefits, investors are offered both a  “dynamic (rewards in proportion to money invested)” and “static (fixed)” incentives.

For fraudulent ‘Hard Forks’, the IFCERT has marked an absence of “genuine code,” apart from the total lack of a technical framework to successfully run a blockchain. Nevertheless, promoters deceive naive investors, and promise guarantee returns on the guise of a ‘hard fork’, that would force the coin’s value, and “never fall.”

IFCERT also claimed that the cryptocurrencies issued by OTC-Only Platforms are extremely phony, and not tradable on any cryptocurrency-exchange apart from their own. These determined coins are allegedly controlled by institutional investors, who manipulate the digital asset’s price by purchasing large amounts in quick succession, thereby causing a “pump,” and deceiving investors who can mistake it as a real store-of-value.

Binance Singapore Unit to Apply For License

Under the new law, aimed at regulating crypto paymetns and trading, firms must register with the Monetary Authority to receive a license
17 February 2020   51

Binance, a Singapore-based cryptocurrency exchange unit, has applied for a license under the new Payment Services Act, which entered into force on January 28.

We have already applied. We submitted the application pretty fast. Binance’s Singapore entity has been in close touch with the local regulators, and they have always been open-minded.


Changpeng Zhao

Founder and CEO, Binance

Under the new law, crypto companies in Singapore must register with the Monetary Authority and receive one of three licenses: an exchange of money, a standard or large payment institution. The measure is aimed at regulating payments and crypto trading using requirements for participants in the traditional finance industry. Zhao did not specify which of the licenses Binance Singapore chose.

Binance has been offering crypto-fiat trading services in Singapore since April 2019 and works with eight coins, including Bitcoin, Ethereum and XRP. The trading platform is supported by Vertex Venture Holdings, a venture division of Singapore's Temasek Holdings.