According to China Judgements Online, a database of Chinese court documents, half of all lawsuits pertaining to cryptocurrencies were filed last year, highlighting an increase in fraudulent activity despite China’s regulatory crackdown. The database indicates that at least 202 cryptocurrency scams were promoted via more than 3,000 different platforms.

Also Read: Indian Central Bank’s Report Shows Cryptocurrencies Are Not Currently a Threat

Half of All Chinese Crypto Lawsuits Were Filed Last Year

China Judgements Online, a website that publishes Chinese court documents, has estimated that 202 cryptocurrency scams were operational in China during 2018.

The website found that the scams were promoted across more than 3,000 different platforms and noted a significant increase in the number of pyramid schemes ostensibly associated with cryptocurrency over the last two years.

According to China Judgements Online, approximately half of the 406 lawsuits relating to cryptocurrency that have been filed in China since 2014 were filed last year. The data highlights the increase in fraudulent activity pertaining to virtual currency following the highly publicized cryptocurrency boom of 2017, despite China’s regulatory efforts.

China Advocates Caution Regarding Crypto

Chinese officials have continued to promote caution regarding cryptocurrencies in recent months, emphasizing concerns that an unbridled cryptocurrency market could lead to systemic risk throughout the domestic economy.

Li Lihui, the head of the state-backed National Internet Finance Association – a self-regulatory organization that collaborates with the People’s Bank of China and “relevant ministries and commissions” – recently emphasized concerns pertaining to the transparency of stablecoins while speaking at an event hosted by Tsinghua University.

“On the platform of the virtual currency exchange, the market value of [stablecoins] is hundreds of millions of dollars. But some stable currency accounts are not transparent enough, and there is no authoritative supervision, there is a risk of trust,” Lihui stated.

Do you think that the number of lawsuits pertaining to cryptocurrencies in China will continue to increase in 2019? Share your thoughts in the comments section below!


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The post Number of Chinese Crypto Lawsuits Doubles in 2018 appeared first on Bitcoin News.


Source: NewsBtc

Samuel Haig

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