China Addresses Digital Assets in an Illegal Fundraising Policy

With China straying away from all-things crypto, except for its CBDC project, the country will be looking to protect citizens by issuing a list of areas that will be deemed illegal fundraisers,  including cryptocurrency transactions and virtual lending activities.

According to a local report, the Chinese Supreme Court has amended its earlier version of the illegal fundraising policy by adding several corrections, targeting digital asset donations and donating platforms.

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When the policy goes live on March 1st, the Chinese government will have full authority to charge and arrest people whose activity falls into the category of "illegal absorption of funds." 

This may have stemmed from a recent alert from the General Office of China, warning users to not fall for fake metaverse scams that offer rewards in digital assets for project backers. 

Even though cryptocurrency is illegal in China, activities like crypto fundraisers were seemingly untouched until now. With the latest policy, China will probably have criminalized every single activity related to cryptocurrencies. 

By being a country with one of the most advanced blockchain technologies, but preventing foreign exchanges and digital assets from entering the land, China might be looking to create its own digital asset market for locals only.