Amidst growing concerns regarding a Macau cryptocurrency organization that is allegedly backed by a former infamous and notorious gangster, while also the company reportedly has connections to the organization behind the recent Facebook data-leak scandal, have prompted monetary chiefs in the city to issue a notice over conceivable “fraud and criminal practices.”
Regulators of Macau reminded the citizens that cryptocurrencies are by no means considered as a legal tender, through a statement published on the website of the Monetary Authority of Macau.
The warning has been issued following the recent news, that Macau Dragon Group, a firm allegedly funded by the infamous Macau gangster “Broken Tooth” Wan Kuok-Koi, hired the British company, Cambridge Analytica, for the purpose of promoting Dragon Coin, a virtual currency aimed at helping gamblers transfer money at Macau casinos.
Wan is amongst one of Asia’s most notorious organized crime personalities, who has reportedly spent at least a decade in prison for several gangland crimes, and also for being the leader of the 14K triad group in Macau.
The statement issued by the monetary authority reads as follows, “Monetary Authority of Macau repeats that any institute which provides regulated financial services like currency or financial exchange platforms and cross-border fund transfer without authorization, is in direct violation of appropriate provisions regarding the Financial System Act.”
Restrictions have been issued by the Macau monetary regulations which strictly do not allow banks and payment establishments from getting involved in any kind of direct or indirect way of providing financial administrations to cryptocurrency exchanges. Although, no principles exist that confine ICO activities by the private area in the casino business.
This decision taken by monetary chiefs in Macau bears resemblance to the warning issued by the Hong Kong government back in January 2018, when it launched a public education operation aimed at educating the citizens about the risks involved with investing in ICOs and cryptocurrencies.
Beijing has likewise also implied strict regulations on cryptocurrencies, and in September a year ago, Chinese authorities of major cities restricted organizations from issuing ICOs, concluding that new firms raising money.