A worker checks on Bitcoin mining equipment at a facility in the Garze Tibetan Autonomous Prefecture, Southwest China’s Sichuan Province. File photo: VCG

The National Internet Finance Association of China (NIFA) alerted the market to risks in Initial Coin Offerings (ICOs) and virtual currency trading.

Unlawful speculation and trading of virtual currency and ICOs have resurfaced and will harm the legitimate rights of consumers, according to the NIFA and financial regulatory bodies.

The NIFA, a self-disciplinary industrial body, warned consumers of potential economic loss and cautioned its members against speculation related to ICOs and virtual currency trading.

The government has demanded all-around inspection and solving of illegal actions involving virtual currency trading.