Authorities are paying more attention. The Chinese government is cracking down on the scams and pyramid schemes plaguing poorer parts of the country. Virtual currencies and peer-to-peer lending are being blamed for the surge in financial fraud, though local Chinese governments have also fallen victim to dubious investment schemes in the hope of quick returns. In a recent report, the Financial Times said that China has been “losing its grip over the global virtual currency market.”
The Chinese government is cracking down on the scams and pyramid schemes plaguing poorer parts of the country. Virtual currencies and peer-to-peer lending are being blamed for the surge in financial fraud, though local Chinese governments have also fallen victim to dubious investment schemes in the hope of quick returns. In a recent report, the Financial Times said that China has been “losing its grip over the global virtual currency market.”