The Weihai Local Financial Supervision and Administration said Friday investors should be more cautious because illegal crypto issuance and trading are on the rise, according to a statement from the authority.
https://www.coindesk.com/chinese-city-warns-investors-crypto-isnt-blockchain
China has a large population that runs on trend and hypes. As the president Xi Jinping talked good about blockchain technology, most of them assumed he's talking about bitcoin and other cryptos so they just jumped into it predicting an easing environment to trade crypto in China. And now it's taking a great deal of effort for the authorities that Xi was talking about a home grown crypto centrally controlled by the CCP.
This. They like gambling and get-rich-quick schemes more than other cultures, and probably thought their government had changed their minds and were legalising bitcoin and cryptocurrencies again.