People’s Daily Warns China-Based Crypto Promotion May Funnel Users to Illegal Activity

People’s Daily said social media accounts touting “100x coins” and monthly crypto returns may be steering users toward virtual currency trading, which prior regulators’ notices classify as illegal financial activity in China.

Summary

People’s Daily warned that accounts advertising “100x coins” and promising monthly cryptocurrency profits were directing traffic to virtual currency trading platforms. The publication cited an earlier notice issued by China’s central bank and seven other agencies, reiterating that virtual currency-related business activities are illegal financial activities in China. The report reinforces the country’s existing regulatory stance against crypto trading and related promotion.

Terms & Concepts
  • 100x coins: A speculative crypto promotion term implying a token could increase 100-fold in value, often used in high-risk marketing.
  • Virtual currency trading: The buying and selling of cryptocurrencies or similar digital assets, which Chinese authorities have classified as part of illegal financial activity.
  • Virtual currency-related business activities: A regulatory category covering services tied to cryptocurrencies, including trading and promotion, that China says are illegal financial activities.