China Signals Clampdown on Digital Currency Pyramid Schemes
The Chinese Ministry of Public Security and State Administration for Industry and Commerce (SAIC), et al. The public security system has been identified with a large number of national pyramid schemes, including some involving cryptocurrency.
The notice comes amid reports of a plan by the People's Bank of China to encourage the government to ban the cryptocurrency trade.
The results of this process are particularly important, especially the nature of the Internet and the nature of the Internet.
The joint action focuses on different types of multi-level marketing (MLM) activities. "Mutual Funds", "Virtual Currency", "Investment Management" and "Online Gaming". Another type of criminal activity is "charity," "helping the poor," "innovation," "average wealth," and "civil-military integration."
A third type of criminal activity involving online pyramid schemes for disadvantaged groups such as students, subsistence allowances and the disabled.
Target: MLM Organizations
MLM organizations help in the transfer of funds and provide the design and maintenance, the notice indicated.
Public safety and the industrial and commercial departments work to strengthen the link between them to control criminal activity. They also work with criminal justice and enforcement of administrative law.
Security organs with network monitoring mechanisms involving the management of telecommunications and large Internet companies.
Read also: China to restrict the trading of cryptocurrencies and mining, not yet specific plans
Focus on cyberattacks
A special action known as "net net 2018" helps prevent cyber attacks, promotes the registration of websites and facilitates the inspection of advertisements.
"We will conduct comprehensive and effective inspections and make great efforts to purify cyberspace to globally promote the establishment of network-free MLM and MLM-free network platforms," the opinion said.
The law also provides advice to government organizations and promotes the status of network marketing. They will punish members of organizations selling pyramids and the world of the popular masses and the economy and the financial order.