The Economic Daily, run by the Central Committee of the ruling Communist Party of China, has warned Chinese investors that the price of bitcoin is heading towards zero.
The state resource notes that the lack of regulation in Western countries such as the US has helped create a highly leveraged market that is “full of manipulation and pseudo-technological concepts.” According to the author of the article, this is “an important external factor” that has always contributed to the volatility of bitcoin.
“Bitcoin is nothing more than a set of digital codes, and its profits are mainly based on buying low and selling high. In the future, when investor confidence collapses, or when sovereign countries declare bitcoin illegal, it will return to its original value, which is zero, ”says the government newspaper.
A month ago, the Economic Daily reported that the country’s government may impose even tougher rules on cryptocurrencies and stablecoins due to the collapse of the Terra ecosystem.
In turn, the Shenzhen Financial Regulatory Bureau said that cryptocurrency trading and speculation seriously threaten the “property security” of citizens, generate criminal activity and disrupt financial order. The regulator warned investors against engaging in illegal financial activities and fraud, citing a statement from the People’s Bank of China.
“All cryptocurrency transactions have been declared illegal, offshore exchanges targeted at users from mainland China have been set aside, and action will be taken against citizens who sell such illegal services,” the central bank said in a statement.
Not only bitcoin, but also altcoins are being hostile by the authorities of the “Celestial Empire”. Worried about the five-fold growth of the non-fungible token sector, the Chinese government said it intends to introduce supervision of the NFT market.
Source: Bits
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