China issues warning on crypto investments as Bitcoin peaks

In this post:

  • China’s state media warns investors about the risks of cryptocurrency investments as Bitcoin reaches a two-year high near $64,000.
  • The warnings come amid regulatory restrictions preventing Chinese citizens from accessing overseas Bitcoin Spot ETFs.
  • Despite a comprehensive ban on crypto trading within China, Binance reports significant trading volumes from Chinese users, highlighting persistent interest in cryptocurrencies.

China’s state media has issued a caution to investors about the risks of cryptocurrency investments, coinciding with Bitcoin’s rise to a near $64,000 high, marking its highest point in two years. The Economic Daily, a government-owned publication, highlighted concerns despite Bitcoin’s recent surge, urging investors to be aware of the underlying risks associated with digital assets. This warning is part of the ongoing apprehensions about the volatility and regulatory uncertainties of cryptocurrencies.

Regulatory concerns and investment barriers

The article referenced Beijing-based lawyer Xiao Sa, who remarked on the U.S.’s approval of Bitcoin Spot ETFs, noting its potential to lower entry barriers for overseas investors, thus increasing market activity. However, Sa also pointed out that these ETFs are not accessible to Chinese citizens, emphasizing the restrictions placed on mainland residents against purchasing such financial products directly. This move aligns with China’s broader regulatory efforts to limit exposure to the volatile crypto market.

China’s crypto crackdown and Binance’s market presence

Amid Bitcoin’s 50% increase in value this year, largely attributed to a spike in trading volumes for U.S.-listed bitcoin funds, China’s stance on cryptocurrency remains stringent. Despite the government’s ban on various crypto-related activities in September 2021, aiming to curb the use and trading of cryptocurrencies, individuals are not barred from owning digital assets like Bitcoin or Ethereum. Interestingly, despite regulatory efforts to suppress cryptocurrency trading within its borders, China has become a significant market for Binance, the world’s largest crypto exchange. In 2023, Binance reported around $90 billion in trading volume from its Chinese users, indicating a robust interest in cryptocurrencies despite governmental prohibitions.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

Share link:

Most read

Loading Most Read articles...

Stay on top of crypto news, get daily updates in your inbox

Related News

Crypto market dominated by meme coins, RWA, and AI in Q2 2024
Subscribe to CryptoPolitan