Shiyan Authorities Investigate Suspected Crypto Pyramid Schemes in China

The Market Supervision Administration of Shiyan City, Hubei Province, has launched an investigation into “Youke Chuang,” “Shiyi Hui,” and “Ronghui Capital” for suspected illegal financial activities.

This highlights China’s stringent prohibition on virtual currency trading, posing risks for participants and potentially influencing local cryptocurrency market behaviors.

Shiyan’s Crackdown on Suspected Crypto Fraud: Key Details

Authorities in Shiyan City, Hubei Province, have initiated an investigation into virtual currency projects “Youke Chuang,” “Shiyi Hui,” and “Ronghui Capital,” suspecting their involvement in illegal financial activities through pyramid schemes.

This development comes as China maintains stringent regulations on virtual currency trading, highlighting the risks consumers face from schemes promising capital protection and high returns.

Enhance risk awareness, and be cautious of various virtual token issuances. — ChainCatcher Editorial Team, ChainCatcher

Crypto’s Impact in China: Historical and Regulatory Insights

Did you know? China’s recent actions against these schemes echo previous crackdowns in 2021, which significantly affected Bitcoin and Ethereum OTC markets in the region.

Bitcoin (BTC) has recently seen a minor uptick, with its price rising by 1.67% in the past 24 hours, reaching $118,886.27, while its market cap stands at $2.37 trillion, according to CoinMarketCap. The cryptocurrency boasts a 59.71% market dominance. Trading volume in the last 24 hours was $61.48 billion, showing a 10.53% increase.

According to Coincu research, financial and regulatory landscapes in China remain volatile, affecting crypto activity. Technological developments may push innovative adaptations in response, but companies must tread carefully under such regulatory scrutiny.