China Cracks Down on Pyramid Schemes in Crypto Industry

China is taking action against unregistered cryptocurrency projects accused of operating as pyramid schemes. The crackdown, launched in August 2025, focuses on preventing deceptive investment promises and protecting retail investors from potential losses. Authorities are particularly targeting platforms without proper authorization, with Shenzhen leading the effort to identify and prevent fraudulent activities. The goal is to ensure market integrity while mitigating financial scams related to cryptocurrencies. The initiative aims to enhance public awareness about cryptocurrency investments through investor education efforts.