Why does China ban the trading of virtual currencies such as Bitcoin and Picoin?

The central bank does not recognize pi coins, and the central bank does not recognize any non-state-led issuance of virtual digital currencies. China prohibits the trading of digital currencies, but there are still many Chinese people trading digital currencies. The Chinese government, the central bank and other financial departments have issued the "Announcement on Preventing Financing Risks of Token Issuance", which clearly limits the transactions of related digital currencies

Pi Coin (Pi), sponsored by Stanford University Created by a team of Ph.D. A virtual currency that can be “mined” on your mobile phone. Compared with mining Bitcoin, which requires enough mining machines, the method of mining Pibi is very simple. You can mine for free with the Pibi App

The rotating chairman of the Blockchain Special Committee of China Communications Industry Association Yu Jianing reminds investors that a small number of frauds disguised as blockchain will set very low thresholds for users in the early stages, with simple operations and low (free) funding thresholds, and use the "head-pulling" reward model and massive publicity. Increase the popularity of the project. At the beginning, the project team essentially aimed to build a multi-level distribution system. In the second stage, when the project team announces that the virtual currency can be transferred or traded, and there is the possibility of capital circulation, they are looking for opportunities to sell the virtual currency in large quantities, and the risks for investors will also greatly increase.

Yu Jianing summarized the four major ways for investors to "avoid lightning": First, be wary of risk-free, high-return blockchain projects. The prices of crypto assets have skyrocketed and plummeted frequently. Air coins are under extreme circumstances. Possibly zero. The second is to avoid projects that rely on "pulling people" and multi-level rebates to realize cash. This type of pyramid scheme marketing is extremely risky.

The third is to learn to read GitHub's open source programs. You can check its parameters and operation methods on the blockchain browser, as well as all accurate information about the asset's issuance, circulation, transfer records, etc. Fourth, blockchain projects that use over-the-counter transactions or specific exchange transactions need to be carefully screened. It is very likely that the price will be highly manipulated and free deposits and withdrawals will not be possible.

With the wealth-making myths of Bitcoin and Dogecoin, “digital currencies” of various names can be described as “the eight immortals crossing the sea, each showing his magical powers.” Pi, a currency that claims to be able to "mine coins" using mobile phones, has recently become popular in WeChat Moments. News about Pi Coin "pulling people away" can be seen everywhere on Weibo and WeChat Moments.

Most of the apps in the currency circle can only be downloaded from the mobile application market with overseas IDs. Borrowing other people's IDs may upload files on your own phone. These virtual currency Apps may also upload user private information during use, allowing user privacy to run naked in the online world