A Chinese state-run newspaper published an article warning of bitcoin price falling to zero amid the crypto market sell-off. Meanwhile, financial regulators in Shenzhen have issued a new cryptocurrency warning.
State Newspaper Warns of Bitcoin Losing Value
China’s state-run Economic Daily published an article on Wednesday warning against bitcoin, according to the SCMP. The national newspaper is directly under the control of the ruling Chinese Communist Party Central Committee.
The article warned that investors should be wary of the risk of bitcoin prices “heading towards zero” amid the recent crypto market selloff.
“Bitcoin is nothing more than a string of digital codes, and its returns come primarily from buying low and selling high,” the paper details, adding:
In the future, once investor confidence plummets or when sovereign countries declare bitcoin illegal, it will revert to its original value, which is completely worthless.
The paper details that the lack of regulation in Western countries, such as the United States, has helped create a highly leveraged market that is “full of manipulative concepts and pseudo-technology”. The article describes it as an “important external factor” contributing to bitcoin’s volatility.
The public media warning reflects Beijing’s tough stance against cryptocurrency and related activities that the government has banned.
New crypto warning from Chinese regulators
On Tuesday, the Shenzhen Financial Regulatory Bureau, the People’s Bank of China’s Shenzhen Central Sub-Branch and the Shenzhen Development and Reform Commission also jointly issued a warning that investors should be vigilant about activities. illegal crypto financials and how to avoid getting scammed.
The notice states that virtual currency trading and speculation “seriously endangers” the safety of people’s property and breeds gambling, illegal fundraising, fraud, pyramid schemes, money laundering and other illegal and criminal activities. He also claims that they disrupt the economic and financial order of the country.
Financial authorities cited a statement issued in September last year by China’s central bank, the People’s Bank of China (PBOC), and 10 ministries and commissions stating that virtual currency is not legal tender and that activities related are illegal financial activities.
What do you think of the state-run newspaper issuing a warning about bitcoin price dropping to zero and Chinese regulators warning against illegal crypto activities? Let us know in the comments section below.
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