Chinese State Media Warns of Cryptocurrency Risks Amid Bitcoin Rally
Date: 2024-03-04 Author: Dima Zakharov Categories: IN WORLD
Chinese State Media Caution Investors
Chinese state media outlets are advising investors against diving into cryptocurrency investments amidst the ongoing Bitcoin rally. Economic Daily, a state-run newspaper, emphasized the need for caution regarding Bitcoin and cryptocurrency-linked products. The newspaper quoted Beijing-based lawyer Xiao Sa, who highlighted the recent approval of Bitcoin spot ETFs in the United States. According to him, this approval has lowered the entry barrier for foreign investors and boosted trading activity in the market.
Foreign Restrictions and Market Uncertainty
Xiao Sa also underscored that foreign Bitcoin ETF brokers cannot sell these financial products to Chinese citizens. Additionally, residents of mainland China are prohibited from directly purchasing such financial products using tools. The article also cites Zhao Wei, a senior researcher at OKX, who highlighted other issues in the cryptocurrency market. These include growing macroeconomic uncertainty, unforeseen industry events, and unclear regulatory policies.
China's Stance on Cryptocurrency
In September 2021, the Chinese government took significant steps to ban cryptocurrencies, involving 10 different agencies. They declared various cryptocurrency-related activities illegal, categorizing them as illicit financial activities. This move aimed to restrict the use and trading of cryptocurrencies within the country. While the government cracked down on such activities domestically, it did not prohibit individuals from directly owning digital assets such as Bitcoin or Ethereum.
