China cautions investors against Bitcoin (BTC) despite long-standing ban
China’s state-run newspaper has issued a crucial advisory to investors, urging vigilance amidst Bitcoin’s (BTC) recent surge to a two-year peak of over $65,000
The caution comes in the backdrop of persistent regulatory concerns and a dynamic global crypto landscape.
China’s clampdown on cryptocurrencies has been long-standing. In September 2021, the government labelled various crypto-related activities as illegal. While this move aimed to curb specific actions, ownership of digital assets like Bitcoin (BTC) or Ethereum (ETH) was not outright prohibited. However, lingering concerns over capital flight and financial instability persist, prompting ongoing warnings from state media.
The recent advisory coincides with a substantial increase in Bitcoin’s value this year, accompanied by heightened trading volumes for US-listed Bitcoin exchange-traded funds (ETFs) and others.
To regulate transactions involving crypto, China intends to revise its existing anti-money laundering rules. The guidelines are aimed at helping implement more effective mechanisms of monitoring and supervising the industry of crypto. This is the first major review since 17 years ago as there has been a need for oversight and regulation in this dynamic Web3 environment.
