NIFA: cryptocurrency exchanges mislead traders

The China Internet Finance Association (NIFA) called on citizens to comply with regulations and not to act with digital assets, as cryptocurrency exchanges provide “exaggerated advertising” to attract potential investors.

“In the framework of the current turbulence in the economy, virtual currencies are advertised by some trading platforms as“ safer hedging assets than precious metals, ”while in reality a fall in prices in virtual currency has led to significant economic losses for many investors,” representatives of the department say . According to NIFA representatives, in order to lure new visitors to their resources and force them to engage in trading, some sites illegally increased traffic with the help of specialized software, some of them even copy information from their competitors. Particular attention is also paid to such actions as deliberate suspension of services during a period when exchange specialists understand that they will lose money, thereby making trading risky for customers.

We add that the Chinese government imposed a ban on cryptocurrency activities in 2017.