Monetary Authority of Macau has Warned Residents About Cryptocurrencies

Be careful when investing

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According to the Monetary Authority of Macau, there might be a possibility of criminal activities and fraud in cryptocurrencies. The authority was cautioning the public. This warning was issued after revelations that Macau Dragon Group which is associated with Chinese Gangster Wan Kuokoi had obtained the services of Cambridge Analytica to promote its Dragon Coin. Dragon Coin is a new digital currency for gamblers to ease the transfer of money to Macau Casinos. The Coin’s association with Wan who spend more than ten years in prison for different crimes raised concerns.

According to the statement from the Monetary Authority of Macau:

“It has been reported that Macau was recently involved in an ICO. The authority is hereby reminding all Macau residents that digital currencies are virtual products and not legal currencies. Everyone should be aware of criminal activities and fraud associated with digital currencies.”

Macau has been very strict when dealing with cryptocurrencies. If fact payment institutions including banks are not allowed to directly or indirectly get involved in providing services to crypto exchanges under the Macau regulations. However, there are no rules which restrict ICOs in the private casino industry.

According to the authority: “Monetary Authority of Macau has made it clear that institutions that provide regulated financial services like currency exchange, financial exchange platforms and cross-border fund transfer without the authority’s permission will be violating several provisions of the Financial System Act.”

The association of Dragon Coin with Cambridge Analytica has raised concerns because Cambridge Analytica has been involved in cases related to data privacy and manipulation of voters in several cases. In fact, the UK based firm has been sued for using Facebook user data of more than 50 million users without their consent. The Analytics Company is said to be advising the new coin on the way to structure its ICOs.

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