Macau Regulator Warns Public Of Cryptocurrency Risks After Token Issued By Local Gangster
According to the South China Morning Post, the Macau Monetary Authority issued a warning to the public about the possibility of “fraud and criminal activity” related to cryptocurrencies..
The warning came shortly after it was revealed that Macua Dragon Group, a company linked to Chinese gangster Wang Kukoi, hired Cambridge Analytica to promote Dragon Coin, a virtual currency to transfer money to Macau casinos..
Wang has reportedly been behind bars for a total of more than 10 years for various crimes, including leading the 14K triad operating in Macau..
“According to media reports, one of the Macau companies was recently involved in organizing an ICO. The Macau Monetary Authority reminds the entire Macau population that cryptocurrencies are virtual products. They are not legal currencies or financial instruments. Macau residents should be aware of criminal activity and fraud related to cryptocurrencies, ”the ministry said in a statement..
Macau’s monetary laws prohibit banks and payment institutions from directly or indirectly participating in the provision of services for cryptocurrency exchanges. However, there are no rules that would prohibit ICOs for the private casino industry..
“Macau’s Monetary Authority reiterates that any institution that, without authorization, provides regulated financial services such as currency exchange, international money transfers and financial exchange platforms, violates the relevant provisions of the Financial System Act,” the ministry said regarding the illegality of digital assets..