China Warns Offshore Telecom Companies
Introduction
China is warning offshore telecom companies against using “new technologies” – digital assets, blockchain, artificial intelligence (AI) and the metaverse – for nefarious purposes.
China’s Warning
According to the Global Times, citing a statement by China’s Central Political and Legal Commission, “Entities operating from outside China use deceptive tactics such as pretending to have lucrative business opportunities to recruit unsuspecting victims.”
“From the perspective of fraud methods, fraud groups use blockchain, metaverse, virtual currency, artificial intelligence and other new technologies and new formats to constantly update criminal tools, which are more hidden and confusing,” the commission said. “This requires public security, finance, communications, Internet and other departments to work together, implement advanced technical means, and fulfill the responsibility of the main body of supervision.”
The commission pledges to “take tough action”, raise public awareness and strengthen judicial circuits to detect and prevent illegal activities by foreign companies.
He did not name the companies or groups it was referring to.
The Intermediate People’s Court of Xuzhou, east China’s Jiangsu Province, is reported to be focusing on 52 telecom network fraud cases. Recently, 85 defendants have been sentenced.
This announcement coincides with what appears to be a shift on the part of China when it comes to cryptocurrency. Hong Kong, for example, now allows retail investors to buy bitcoin (BTC). Observers note that this move may be a sign that China is preparing to trade cryptocurrencies again.
Remember how China was once a pioneer in cryptocurrency adoption and mining. But in 2017, it gradually began banning cryptocurrency mining and trading in general, stating that it no longer viewed digital currencies as legal tender. Major crypto-related websites, including CoinGecko, TradingView, and CoinMarketCap, have been blocked by China’s internet firewall.
Hong Kong is preparing to offer retail cryptocurrency trading licenses soon
