China's People's Daily Warns Against Fraudulent Crypto Promotions

The People’s Daily, the flagship newspaper of the Central Committee of the Communist Party of China, has issued a formal warning against the rise of irregular financial self-media accounts that promote high-risk cryptocurrency trading. In an article titled "Disrupting the Capital Market, These Irregularities in Financial Self-Media Accounts Need Vigilance", the publication criticized the dissemination of fake profit information used to lure unsuspecting investors into volatile digital asset markets. This move signals a continued tightening of oversight regarding how virtual currencies are marketed to the public via social media and technical platforms.

Combating "Hundredfold Coin" Schemes and Misinformation

The report specifically identified deceptive marketing tactics used by certain influencers and accounts to attract retail investors. These entities often promote the idea of "hundredfold coins" or claim that users can achieve unrealistic returns, such as "making millions a month" through speculative trading. According to the publication, such narratives are frequently built on fabricated data designed to create a false sense of security and profitability.

The People's Daily highlighted several risks associated with these practices:

• The use of misleading financial data to manipulate market sentiment.
• The promotion of unverified digital assets through unregulated social media channels.
• The potential for significant financial loss for retail participants following "get-rich-quick" narratives.

Legal Framework and Regulatory Risks

By referencing a previous notice issued by eight national departments, including the People’s Bank of China (PBoC), the article reiterated that business activities related to virtual currencies are classified as illegal financial activities within the country. The warning extends beyond the traders themselves to include the infrastructure providers that facilitate these interactions. This includes platforms providing traffic, advertising, and technical services to entities engaged in unauthorized crypto-asset transactions.

Accounts and platforms providing traffic and technical services for illegal virtual currency transactions are suspected of illegal and irregular activities, and may threaten financial security and anti-money laundering efforts.

The authorities emphasize that these activities pose a direct threat to national financial security and complicate Anti-Money Laundering (AML) efforts. By targeting the "self-media" ecosystem, regulators aim to cut off the information flow that sustains underground trading networks and protects the broader economic stability from the volatility inherent in the blockchain and crypto sectors.

As the regulatory landscape evolves, the focus has shifted from direct trading bans to the curtailment of promotional ecosystems that bypass traditional financial safeguards. Investors are encouraged to remain vigilant against unverified investment advice found on social media platforms, as the Chinese government maintains its strict stance against the integration of virtual currencies into the domestic financial system.