The National Internet Finance Association of China Warns Against Overseas Cryptocurrency Trading

The National Internet Finance Association of China has issued another cautionary note on trading in cryptocurrencies. This one is related to individuals who attempt to skirt the ban by trading on overseas platforms or by utilizing other surreptitious methods. Before the ban, Chinese trading in cryptocurrencies was rather robust but now most activity takes place in other markets around the world.

Noting the Chinese government has banned all issuance and financing activities associated with tokens, NIFA warned scofflaws against flouting the ban. NIFA is effectively government entity that helps to guide all things Fintech related in China.

The Association said that at present, the relevant administrative departments have completed the clean-up and remediation of the domestic ICO activities and “virtual currency” trading operations, during which some investors turned to overseas activities. NIFA cautioned that investors are risking loss due to the widespread lack of norms in the international arena, market manipulation and money laundering.

NIFA said they have monitored and found that some institutions or individuals in China are still organizing currency transactions and over-the-counter transactions, which are complemented by services such as market makers and guarantors, thus flouting the cryptocurrency ban.

NIFA said their members should abide by the industry self-regulation commitment to take the initiative to resist illegal financial activities, and not participate in any ICOs or virtual currency transactions.

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