China Closely Follows Cryptocurrency Ponzi schemes

China‘s ministry of public security said on Friday that it will closely monitor cryptocurrency pyramid schemes in the country, including those allegedly involving cryptocurrencies.

19 January statement, the Ministry of Public Safety announced its plan to remove scams from the pyramid or financial plans to create sales networks of people’s own products, to encourage them to sell various products.. Some of the popular cryptocurrency pyramids include OneCoin, which was the target of an international, multi-agency crackdown.

According to a statement from the ministry :

“The country’s public security bodies, industry and trade departments will continue to focus on making special regulations in key areas, destroying organizations that sell the pyramid scheme and punishing their members, and also protecting the legitimate rights and interests of the people through criminal activities. will continue to seriously protect its economic and financial order”

The disclosure does not specify the degree to which the focus will be on pyramid schemes allegedly involving cryptocurrencies, compared to pyramid schemes involving other types of products.. Despite the Gemcoin case that resulted in the defraud of thousands of Chinese citizens in the past, the existence of OneCoin in China is a known fact.

Time will tell if China will move towards stronger decisions, as seen in the ban on ICO last year. As reported by CoinDesk at the time, Chinese authorities had banned Blockchain funding model, which was seen as an illegal form of fundraising.

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