By Staff Writer
The National Internet Finance Association of China (NIFA), a self-regulatory body under the People’s Bank of China (PBoC), issued a warning on earlier this month against the fake trading volumes reported by foreign crypto exchanges.
The NIFA reported that some of the digital currency platforms are taking advantage of the recent volatility of the traditional markets, creating false news that digital assets are safer than investments in gold or silver.
“These platforms also create illusions of “prosperity” in the virtual currency trading market through actions such as robot program brushing and data tampering,” NIFA warned.
“In our sampling analysis based on trading data from some of the exchanges, the daily trading turnover rate for more than 40 coins is over 100 percent, while more than 70 coins’ rate exceeds 50 percent,” the agency stated. “Despite the relatively low price and small market value, there have been massive trading volumes.”