Chinese State-Owned Media Warns Against Bitcoin Risks Amidst Recent Rally
Chinese state-owned media publication Economic Daily published an article on Sunday warning against the risks associated with bitcoin amidst the cryptocurrency’s recent rally. This comes as China continues to ban crypto trading activities.
The Warning from Economic Daily
Economic Daily, a state-owned newspaper also known as Jingji Ribao, emphasized the need for caution when it comes to bitcoin-related products. The article stated that bitcoin has yet to enter the mainstream and urged investors to remain cautious.
Differences in Regulation: US vs China
The article highlighted the disparity in regulation between the United States and China. While the US has allowed the listing of spot bitcoin exchange-traded funds (ETFs), China maintains its ban on crypto trading. This means that overseas bitcoin ETF dealers cannot sell relevant financial products to Chinese residents, and investors in mainland China are prohibited from directly purchasing such products.
The Crypto Trading Ban in China
In September 2021, the People’s Bank of China, the Supreme People’s Court, and several other central authorities issued a notice banning all crypto trading activities on the mainland. The ban specifically targeted services provided by overseas crypto exchanges to Chinese residents, considering them illegal financial activities. Despite these regulations, some investors have still found ways to circumvent the rules and trade overseas.
Bitcoin’s Recent Price Rally
Last week, the price of bitcoin surged above $60,000 and briefly surpassed $64,000 on Monday morning in Asia. As of 12:30 p.m. Hong Kong time on Monday, according to The Block’s Price Page, the world’s largest cryptocurrency by market capitalization was trading at around $63,600.
Hot Take: China’s Warning Reflects Concerns Amidst Bitcoin’s Surge 🚨
The recent warning from China’s state-owned media about the risks associated with bitcoin is reflective of the country’s ongoing concerns amidst the cryptocurrency’s surge. Here are some key takeaways:
1. Cautionary Tone from Economic Daily
Economic Daily, a state-owned newspaper, emphasized caution and reminded investors that bitcoin has not yet entered the mainstream. This indicates that Chinese authorities continue to view cryptocurrencies with skepticism.
2. Regulatory Differences Between US and China
The article highlighted the contrasting approaches to regulation taken by the United States and China. While the US has allowed spot bitcoin ETFs, China maintains its ban on crypto trading. This demonstrates the divergent perspectives on cryptocurrencies in these two major economies.
3. The Crypto Trading Ban in China
The Chinese government implemented a comprehensive ban on all crypto trading activities on the mainland in September 2021. This ban targeted services provided by overseas crypto exchanges to Chinese residents and aimed to curb what authorities deemed as illegal financial activities.
4. Bitcoin’s Price Surge
Bitcoin experienced a significant rally, surpassing $60,000 and briefly reaching $64,000. This surge in price reflects the continued interest and investment in cryptocurrencies, despite regulatory challenges.
In conclusion, China’s state-owned media warning against bitcoin risks highlights the country’s cautious stance towards cryptocurrencies amidst their recent surge. The article underscores the regulatory disparities between China and the US and emphasizes the need for investors to exercise caution when dealing with bitcoin-related products.
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