UBS Bank warns clients about the risks of investing in cryptocurrencies – Bits Media

According to the warning from the Swiss bank UBS, directed to clients, cryptocurrencies may not be a suitable assetAmi for investment, If the regulators continue to exert pressure on them.

The UBS management considers, that the recent prohibitions on cryptocurrencies in China negatively affected not only their cost, but also influenced the activities of cryptocurrency firms. So, In June, the People's Bank of China (NSC) forbade banks to serve any customers, working with digital assets.

According to UBS analysts, If the regulatory authorities continue the “pressure” for cryptocurrencies, This will exacerbate the state of the market. UBS is afraid, that China’s actions will cause the “domino effect”, and financial regulators around the world will take similar measures, Prohibiting bitcoin production and cryptocurrency trading.

“The regulators have demonstrated, that they can and will fight cryptocurrencies, Therefore, we recommend that investors do not get involved in the trade of cryptoactives and include less risky assets in their investment portfolio. The digital currency market is highly dependent on the mood of investors, And any tightening of regulatory measures can lead to the appearance of "bubbles", - The warning says.

Bank experts do not exclude a significant increase in the course of cryptocurrencies. However, they called this market a speculative, which carries significant risks for professional investors. UBS also stated, that investors should be treated with particular caution in the trade in cryptocurrencies using borrowed funds. According to the bank, increasing the credit shoulder in 50 or 100 once at once diverges with the principles of financial regulation.

In May, UBS announced plans for the presentation of special tools for investment in crypto assets, Since the bank customers showed increased interest in them. However, the bank made this statement even before the introduction of tough restrictive measures in China. Note, that UBS analysts and previously considered, that bitcoin cannot become a protective asset due to its high volatility.