Macau Regulator Warns Against Cryptocurrency Casino Tokens

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The Macau Monetary Authority – the financial watchdog of the popular Eastern casino hub – has issued warnings against investing in cryptocurrencies following reports that tied Dragon Corp with the now-notorious PR firm Cambridge Analytica. Dragon Corp, which launched an ICO campaign for a floating cryptocurrency casino in Macau, has reportedly engaged the firm to promote its Dragon Coin tokens. Only a day before, reports came in of another crypto-company that falsely promoted digital coins which were supposed to be accepted by junket operators in the region.

Dragon Corp ICO Tied to Cambridge Analytica

The monetary authority of Macau has issued a warning of cryptocurrency “fraud” amidst reports of Dragon Corp being linked to Cambridge Analytica – a British consulting firm that was caught deceiving users to submit their Facebook data and reportedly abusing it to influence voters on the social network, the South China Morning Post reports. In a statement published on its website, the Monetary Authority of Macau reminded locals that digital currencies were not considered a legal tender, per the law.

As the statement reads, the regulatory body was made aware that a Macau company has been running an ICO campaign and thus wanted to remind residents that digital currencies were “not legal currencies and financial tools” but also that locals should be “aware of fraud and criminal activities associated with cryptocurrencies”. The financial watchdog also underlined that any “institution” that is involved in financial services without permission is in breach of the Financial Systems Act of Macau.

The warning came after a New York Times report acquired e-mails and documents that linked Cambridge Analytica with Dragon Coin (the token of the ICO campaign) and the infamous Macau gangster Wan Kuok Koi or “Broken Tooth”, as he is known locally. Dragon Corp. denied any reports that the gangster helped finance the project, after Wan was seen taking publicity photos with executives from the company. The coin itself, apart from being planned for use in the new cryptocurrency casino, is also to help fund VIP cryptocurrency gambling in 3 South Korean casinos, following the implementation of the Dragon blockchain in their land-based rooms.

Chinese Crypto Company Falsely Promotes Coin for Macau Junkets

A few days before Macau’s regulatory authority picked up on the Dragon Corp. news, another coin issuer caught the attention of local junket operators. Namely, a company called Lantai Digital Application Technology Co Ltd., was caught publishing “fake news” about its own cryptocurrency. Reportedly, Lantai promoted its own digital coin to the media, saying that it could be used for VIP gambling in Macau casinos as it was supported by local junket operators.

However, short after news broke out about the coin, a number of high-profile junket operators in Macau (Suncity, Meg-Star, Tak Chun, and Guandong, among others) issued statements denying their support of the coin and expressing dissatisfaction with the use of their names.  Reportedly, some even plan to sue Lantai for using their names and logos.

Lantai then responded to the denial by admitting that the company has never signed any “cooperation agreements” with the firms and stated that the trading and application of its cryptocurrency has no ties to the operators.  The local police are currently investigating the case but a spokesperson of the authorities has stated that no complaints were thus far submitted for the false advertising and use of trademark names.

April 25, 2018: • No Comments

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