Chinese regulator: Exchanges deceive investors by presenting bitcoin as a safe asset The National Internet Finance Association of China (NIFA) has warned investors about the risks of investing in digital assets.

Chinese regulator: Exchanges deceive investors by presenting Bitcoin as a safe asset

China's National Internet Finance Association (NIFA) warns investors about the risks of investing in digital assets.

On Thursday, NIFA published a report in which it accused foreign trading platforms of using "robotic programs to falsify data or create the appearance of" prosperity "in the virtual currency trading market.".

“Our sample included 40 coins with a daily turnover of 100% and over 70 coins for which this figure exceeds 50%. Despite the relatively low prices, their trading volumes are huge, ”the organization writes. Some exchanges, she said, use completely false trading data, simply copying transactions from other platforms..

NIFA also claims that exchanges use "all sorts of tricks" to attract users. For example, some platforms are raising excitement around the concept that "virtual currencies are a safe asset along with gold and silver." This is not so, according to NIFA.

"After as such investors will be lured into investing in cryptocurrencies, some exchanges are beginning to manipulate the market with a set of trading techniques in order to appropriate their assets, ”the regulator adds.

Some exchanges can shut down their systems so that users cannot conduct transactions, which is why they incur large losses, especially when trading with leverage, writes NIFA. At the same time, operators cryptocurrency exchanges are "relatively hidden" formations and often do not provide real information about their location.

NIFA was formed by the People's Bank of China and operates on a self-governing basis. Chinese authorities have imposed a ban on cryptocurrency trading in 2017 year, however, local traders still find workarounds, such as using peer-to-peer mechanisms.

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