Weihai, a port city in Shandong province of eastern China has warned people to make sure you are really investing in blockchain innovation and not cryptocurrency.
The Weihai authority stated:
As the country is promoting blockchain technologies, people start to hype virtual currencies again and some of the related illegal operations have come back to life
Some companies set up servers outside China and promote their products among Chinese investors on social media
They usually process transactions via online payment applications, therefore many of these funds are hard to retrieve as they floating abroad
Other local authorities, including the police department and the Weihai branch of the central bank and China Banking and Insurance Regulatory Commission, have all endorsed the statement and they also want to carry out inspections of illegal ICOs and crypto exchanges based in China.
Bitcoin has taken another dive today it may not be based on this story alone but sentiment has definitely been lower since the Chinese government pointed out that blockchain investments are not the same as crypto ones.
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