Nixse
0

Bitcoin is under increasing pressure

UBS is concerned about a “crypto-growing bubble” that could burst as regulatory bans continue.
The Swiss banking giant said stricter regulations could arrive in the west, in addition to recent restrictions by China and a ban on new asset classes.
The investment bank told investors to stay away from cryptocurrencies and build their portfolios around less risky assets.
The Swiss banking giant drew attention to recent regulatory violations by warning its clients that digital assets like Bitcoin are unsuitable for professional investors.
UBS suggested that regulators around the world could eventually “bring down the inflated crypto market.” The bank told its clients in a note that regulators have shown they can take action against cryptocurrencies. The investment bank’s proposal was for clients to stay away from digital currencies and build portfolios around less risky assets.
The Swiss bank said: We have long warned that changing investor sentiment or regulatory failures could create bubble-like crypto markets.
Bitcoin is under increasing pressure
UBS’s global wealth management team highlighted China’s recent ban on cryptocurrencies and the fall in prices since then. China further abolished digital assets, imposing new restrictions on cryptocurrencies in June, and authorities in several provinces, including Yunnan, Xinjiang, and Sichuan, closed mining operations.
China’s central bank has further ordered large banks and payment service providers to suspend all Bitcoin-related transactions, saying digital assets disrupt the “normal order of the economy and financial system.” The National Bank of China believes that cryptocurrencies pose a significant risk, including money laundering.
The bank believes there are signs of stricter rules for Western markets, including the United States and the United Kingdom.
The exchange of cryptocurrencies Binance is at the center of attention because it is under investigation by the Ministry of Justice and the Internal Revenue of the USA. The platform also encountered obstacles as authorities in the Canadian province of Ontario issued a notice accusing the exchange of non-compliance.
Binance also faces challenges in the UK, where financial supervision by the state has banned exchanges from carrying out any “regulated activities.” The Japanese Financial Services Agency recently sent a second warning to the crypto platform that the company did not register to work in the country.
Although the Swiss banking giant predicts that cryptocurrency prices could rise significantly higher in the future, UBS considers the digital assets market too speculative. Investing in cryptocurrencies poses a significant risk to professional investors.
However, the investment bank has been exploring various ways to enable its clients to gain exposure to cryptocurrencies since mid-May. Citing rising demand, UBS said there were concerns that it could lose its customers if it denied access to cryptocurrencies to its customers.

  • Support
  • Platform
  • Spread
  • Trading Instrument
User Review
  • Support
    Sending
  • Platform
    Sending
  • Spread
    Sending
  • Trading Instrument
    Sending


You might also like

Leave a Reply