The Chinese Central Political and Legal Committee has recently released a statement warning overseas telecom companies not to take advantage of new technologies such as digital assets, blockchain, AI and the metaverse, as some groups have been using deceptive tactics such as offering lucrative job opportunities to recruit unsuspecting victims.

To tackle this issue, the committee has declared a “severe crackdown” on such activities, which will involve increased public awareness and help from judicial departments. The Intermediate People’s Court of Xuzhou, East China, is reportedly focusing on 52 telecom network fraud cases, with 85 defendants recently sentenced.

This announcement comes at a time when China’s attitude towards cryptocurrencies seems to be changing. For example, Hong Kong now allows retail investors to buy Bitcoin. This could be seen as a sign that the Chinese are once again warming up to crypto trading.

Previously, China had been a leader in the adoption and mining of cryptocurrencies. However, in 2017, it gradually began banning mining operations and trading, asserting that digital coins are no longer legal tender. Various cryptocurrency-related websites, including CoinGecko, TradingView and CoinMarketCap, were blocked from the country’s internet firewall.