China central bank warns against illegal fund-raising by virtual currency, blockchain firms

FILE PHOTO: A Chinese national flag flutters outside the headquarters of the People's Bank of China, the Chinese central bank, in Beijing, April 3, 2014. REUTERS/Petar Kujundzic - Copyright Petar Kujundzic(Reuters)

By Reuters

Published on 24/08/2018 - 09:34•Updated 24/04/2024 - 08:57

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BEIJING (Reuters) - China's central bank issued a warning on Friday on the risks of illegal fund-raising by companies marketing virtual currencies and blockchain technology.

In a post on its website, the People's Bank of China said those so-called "financial innovation" activities are akin to ponzi schemes, adding that people should hold a rational attitude towards blockchain rather than put blind trust in it.