During the recent sell-off in the cryptocurrency market, a Chinese tabloid that is state-run released an article that issued a warning about the price of bitcoin dropping to zero. During this time, the financial authorities in Shenzhen have issued a fresh warning on cryptocurrencies.
A newspaper published by the state issues a warning about the impending devaluation of bitcoin.
According to SCMP, on Wednesday, the Chinese government’s daily Economic Daily published an article that issued a caution regarding bitcoin. The ruling Chinese Communist Party’s Central Committee maintains complete editorial authority over the country’s most widely circulated publication.
During the latest sell-off in the cryptocurrency market, the author of the essay cautioned investors to be wary of the possibility that bitcoin prices may “go to zero.”
According to the information provided by the publication, “Bitcoin is nothing more than a string of digital codes,” and “its rewards are mostly derived from purchasing low and selling high,” the following is also included:
A market “full of deception and pseudo-technology concepts” has developed as a result of lax regulation in Western countries like the United States, according to the newspaper. According to what is said in the article, it is a “important external component” that contributes to the volatility of bitcoin.
The warning that was broadcast on state-controlled media illustrates the hard position that Beijing takes against bitcoin and other activities that are related to cryptocurrencies that the government has forbidden.
Chinese Authorities Issue a New Cautionary Note Regarding Cryptocurrency
Shenzhen’s Financial Regulatory Bureau, the Shenzhen Central Sub-branch of the People’s Bank of China, and the Shenzhen Development and Reform Commission all issued a combined warning to investors on Tuesday, urging them to be wary of illicit financial activities related to cryptocurrencies and providing tips on how to avoid being taken advantage of by con artists.
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According to the notice, the trading and speculating of virtual currencies “seriously risk” the security of people’s property and give rise to unlawful fundraising, fraud, pyramid schemes, money laundering, and other forms of illegal and criminal activity. In addition to this, it asserts that they wreak havoc on the economic and financial order of the nation.
The authorities cited a statement that was issued in September of the previous year by China’s central bank, the People’s Bank of China (PBOC), and ten other ministries and commissions declaring that virtual currency is not legal tender and that any activities related to it are illegal financial activities. The statement was published by the PBOC.
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What are your thoughts on the Chinese regulators issuing a warning about unlawful crypto operations and the state-run tabloid posting a warning about bitcoin’s price falling to zero? Let us know what you think in the comments below.
Kevin Helms
When Kevin discovered Bitcoin in 2011, he was a student of Austrian economics and has been an advocate of the currency ever since. Bitcoin security, open-source systems and network effects are among his favorite topics, as well as the connection between economics and cryptography.
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