In its quest to prevent cybercrimes, China is going after people promoting token sales they say are affiliated with the Blockchain, according to reports.

We’ve seen this practice increase over the last few months as companies try to boost their attractiveness and appear legitimate through the use of the digital ledger technology’s name. 

China’s not sitting back and allowing for it. 

Instead, several of its regulatory authorities have formed a coalition of sorts to halt this kind of abuse so not to cause the overall reputation of Blockchain to be damaged.

Already, it has reportedly identified more than 2,000 tokens with active user bases and 3,000 knockoff platforms that are promoting fake Blockchain products.

When caught, these fraudsters face arrest and prosecution. Something in particular has caught the eye of some observers and it’s the phrase being used to describe the effort. They are calling it a “special campaign,” which has given rise to the thought that prominent figures could be snared. 

The regulatory authorities working on this effort include the People’s Bank of China, the Ministry of Public Security, the Ministry of Industry and information Technology, the Supreme People’s Procuratorate, and the Supreme People’s Court.

The overall goals include “fighting against emerging financial crimes and boosting a shared community of cybersecurity,” according to reports.

Blockchain as a front

As noted above, there has been an uptick in the number of companies that are incorporating the word Blockchain into their names. They are doing this to not only improve their attractiveness, but those that are public are doing it to boost their stock prices.

We told you about how in the U.S., regulators are also aware of the practice. In its capacity in the finance space, the Financial Regulatory Authority, best known as FINRA, keeps an eye on things that can affect investors. 

Cryptocurrencies are now on its radar screen, and it released some important tips for investors to help them avoid being scammed as it relates to crypto-related stocks. 

The most glaring example of the misuse of the word Blockchain occurred when a company formerly known as Long Island Iced Tea changed its name to Long Blockchain Corp. There is no proof that it uses Blockchain technology.

While this practice is clearly growing, it appears that China’s clear warning that it is willing to prosecute is one of the strongest examples of a country taking action.