Chinese state-run media issues a new cryptocurrency warning as regulators warn of Bitcoin’s price dropping to zero.
In light of the recent sell-off in the cryptocurrency market, a piece in a state-run media in China issued a warning that bitcoin’s price could go to zero. In the meantime, Shenzhen’s financial watchdogs have updated their bitcoin warning. According to SCMP, a story regarding bitcoin was published in China’s official newspaper Economic Daily on Wednesday. The Central Committee of the Chinese Communist Party, which is in power, has direct authority over the national newspaper. In light of the current crypto market sell-off, the piece cautioned investors that there was a chance that bitcoin prices may “go to zero.” According to the publication, a highly leveraged market “full of deception and pseudo-technology concepts” was made possible by the lack of regulation in Western nations like the United States. It is referred to in the article as a “major external element” raising bitcoin’s volatility. Beijing’s stern attitude against cryptocurrencies and associated activities that the government has forbidden is reflected in the warning from the state-run media.
The Shenzhen Development and Reform Commission, the Shenzhen Central Sub-branch of the People’s Bank of China, and the Financial Regulatory Bureau of Shenzhen jointly issued a warning to investors on Tuesday about illicit financial operations involving cryptocurrencies and how to avoid being conned. The warning claims that trading and speculating in virtual currencies “serious risk” the security of people’s possessions and encourage illegal fundraising, gambling, fraud, pyramid schemes, and other unlawful and criminal acts. Additionally, it asserts that they interfere with the nation’s financial and economic system. The People’s Bank of China (PBOC), along with 10 other ministries and agencies, issued a statement in September of last year stating that virtual money is not legal tender and associated operations are illegal financial activities. This declaration was cited by the financial authorities.