Macau issues warning against cryptocurrency 6768
Asia
Aanal Pathak
Apr 21, 2018 at 12:59 PM

Macau authority has issued a warning against a former gangster who was associated with Facebook data leak incident. The accused is also feared to be associated with a Macau-based cryptocurrency firm.

In a statement issued on the Macau authority website, the officials have reminded the citizens of cryptocurrency not being a legal tender in the country.

The warning came in after the revelations of Macau Dragon Group, a firm associated with a gangster Wan Kuok-Koi by the alias “Broken Tooth”, went on to employ the British company, Cambridge Analytica (the company associated with the infamous Facebook data leak ) to promote Dragon Coin.

The new digital coin is created to aid gamblers to transfer money to Macau casinos.

“The local media has reported that a Macau company was involved in an ICO [initial coin offering] recently,” the monetary authority said in its statement. “Monetary Authority of Macau reminds all Macau residents that cryptocurrencies are virtual products, but not legal currencies or financial tools. Residents should be aware of fraud and criminal activities associated with cryptocurrencies.”

“Monetary Authority of Macau reiterates that any institution providing regulated financial services such as currency exchange, cross-border fund transfer, and financial exchange platforms without permission violates relevant provisions of the Financial System Act.”

According to the Macau monetary regulations, banks and payment institutions are prevented any involvement in providing financial services for cryptocurrency exchanges. However, ICO activities can be allowed by the private sector in the casino business.

Earlier, Hong Kong’s Securities and Future Commission warned investors about ICOs being classified to be securities and how the SFC was “concerned about an increase in the use of ICOs to raise funds in Hong Kong and elsewhere”.

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