A Chinese state-run newspaper has published an article
warning about bitcoin’s price falling to zero amid the crypto market
sell-off. Meanwhile, financial regulators in Shenzhen have issued a new
warning about cryptocurrency.
State-Run Newspaper Warns About Bitcoin Becoming Worthless
China’s state-run newspaper Economic Daily published an article
warning about bitcoin Wednesday, according to SCMP. The nationwide
newspaper is directly under the control of the Central Committee of the
ruling Chinese Communist Party.
The article warned that investors should beware of the risk of
bitcoin prices “heading to zero” amid the recent crypto market sell-off.
“Bitcoin is nothing more than a string of digital codes, and its
returns mainly come from buying low and selling high,” the newspaper
details, adding:
In the future, once investors’ confidence collapses or
when sovereign countries declare bitcoin illegal, it will return to its
original value, which is utterly worthless.
The newspaper details that the lack of regulation in Western
countries, such as the United States, helped create a highly-leveraged
market that is “full of manipulation and pseudo-technology concepts.”
The article describes it as an “important external factor” contributing
to bitcoin’s volatility.
The warning from the state-run media reflects Beijing’s firm stance
against cryptocurrency and related activities that the government has
outlawed.
New Warning About Crypto by Chinese Regulators
On Tuesday, the Financial Regulatory Bureau of Shenzhen, the Shenzhen
Central Sub-branch of the People’s Bank of China, and the Shenzhen
Development and Reform Commission also jointly issued a warning that
investors should be vigilant of illegal financial activities relating to
crypto and how to avoid being scammed.
The notice states that virtual currency trading and speculation
“seriously endanger” the safety of people’s property and breed gambling,
illegal fundraising, fraud, pyramid schemes, money laundering, and
other illegal and criminal activities. It also claims that they disrupt
the country’s economic and financial order.
The financial authorities cited a statement published in September
last year by China’s central bank, the People’s Bank of China (PBOC),
and 10 ministries and commissions declaring that virtual currency is not
legal tender and related activities are illegal financial activities.
