Chinese state media publication Economic Daily published an article on Sunday to warn about the risks associated with bitcoin amid the cryptocurrency crisis. recent demonstrationas China continues to ban cryptocurrency trading activities.
Jingji Ribao, or Economic Daily, a state-owned newspaper, wrote that investors should โremain cautiousโ regarding bitcoin-related products and that bitcoin has not yet entered the mainstream.
The article noted that while the United States has allowed the listing of spot bitcoin exchange-traded funds (ETFs), China continues to impose a ban on cryptocurrency trading. The article quotes Xiao Sa, a Beijing-based lawyer, as saying that the blanket ban means that overseas bitcoin ETF distributors cannot sell relevant financial products to Chinese residents, and that investors in mainland China also cannot buy directly said products.
In September 2021, the People's Bank of China, the Supreme People's Court, and several other central authorities issued a notice banning all cryptocurrency trading activities on the mainland. The ban clarified that services provided by overseas crypto exchanges to Chinese residents on the mainland are considered illegal financial activities. However, many investors still found ways to circumvent the rules and trade abroad.
The price of bitcoin recovered above the $60,000 mark last week and briefly surpassed $64,000 on Monday morning in Asia. The world's largest cryptocurrency by market capitalization rose 2.44% in the last 24 hours to trade at around $63,600 as of 12:30 p.m. Hong Kong time on Monday, according to The block pricing page.
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