Macau Warning to Public Over Attainable Fraud with Cryptocurrency Agency, Hyperlinks to Cambridge Analytica

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Monetary authorities in Macau have issued a warning over potential ‘fraud and felony actions’ in relation to a cryptocurrency agency backed by a former gangster. The warning comes following revelations that Macau Dragon Group, a agency related to ‘Damaged Tooth’ Wan Kuok-koi, employed the British firm Cambridge Analytica, to advertise its token, Dragon Coin, a digital forex created to assist gamblers switch cash to Macau casinos.

Wan is one in every of Asia’s most notorious organized crime figures, who spent greater than 10 years in jail for crimes associated to his management place inside the 14Okay triad group. In a press release printed on-line by the Financial Authority of Macau, the regulator reminded residents that cryptocurrencies usually are not thought-about authorized tender or monetary instruments, experiences the South China Morning Submit.

“The media has reported Macau firm was concerned in an ICO (preliminary coin providing) lately,” the assertion learn. “Financial Authority of Macau reminds all Macau residents that cryptocurrencies are digital merchandise, however not authorized currencies or monetary instruments. Residents ought to pay attention to fraud and felony actions related to cryptocurrencies.”

Below Macau’s rules, banks and cost establishments are forbidden from direct or oblique involvement in offering monetary companies for cryptocurrency-related ventures. That stated, there are at the moment no guidelines limiting ICO actions by the personal sector within the on line casino hub.

“Financial Authority of Macau reiterates that any establishment offering regulated monetary companies corresponding to forex change, cross-border fund switch and monetary change platforms with out permission violates related provisions of the Monetary System Act.”

The transfer by financial heads within the metropolis echoes an analogous warning issued by the Hong Kong authorities in January, when it launched a public training marketing campaign on the dangers related to ICOs and cryptocurrencies.

Cambridge Analytica Connection

In a report initially printed by The New York Occasions on Tuesday, and lined by NewsBTC right here, former Cambridge Analytica worker Brittany Kaiser stated the data-mining firm had retained Macau Dragon Group as a consumer and helped publicize its $500 million ICO.

Kaiser revealed that Cambridge Analytica’s involvement with Dragon was linked to a plan to lift cash for the creation of a system to assist folks retailer their on-line private knowledge and promote it to advertisers — a considerably ironic transfer from an organization that has been making headlines for weeks after acquiring the private data of as much as 87 million Fb customers. Wan’s involvement within the deliberate ICO was revealed in September of final yr.

A supply concerned within the monetary companies industries of Macau and Hong Kong stated:

“I believe the clock is admittedly ticking in opposition to the Macau regulators to get on prime of those ICO guys, who’ve clearly been working in opposition to the tide of worldwide, and Chinese language, regulation. The very last thing Macau must be often called is a protected haven for crypto-crooks.”

Picture from Shutterstock.

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