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A Chinese state-run newspaper has published an article warning about bitcoin\u2019s price falling to zero amid the crypto market sell-off. Meanwhile, financial regulators in Shenzhen have issued a new warning about cryptocurrency.<\/strong><\/p>\n China\u2019s state-run newspaper Economic Daily published an article warning about bitcoin Wednesday, according to SCMP. The nationwide newspaper is directly under the control of the Central Committee of the ruling Chinese Communist Party.<\/p>\n The article warned that investors should beware of the risk of bitcoin prices \u201cheading to zero\u201d amid the recent crypto market sell-off.<\/p>\n \u201cBitcoin is nothing more than a string of digital codes, and its returns mainly come from buying low and selling high,\u201d the newspaper details, adding:<\/p>\n In the future, once investors\u2019 confidence collapses or when sovereign countries declare bitcoin illegal, it will return to its original value, which is utterly worthless.<\/p>\n<\/blockquote>\n The newspaper details that the lack of regulation in Western countries, such as the United States, helped create a highly-leveraged market that is \u201cfull of manipulation and pseudo-technology concepts.\u201d The article describes it as an \u201cimportant external factor\u201d contributing to bitcoin\u2019s volatility.<\/p>\n The warning from the state-run media reflects Beijing\u2019s firm stance against cryptocurrency and related activities that the government has outlawed.<\/p>\n On Tuesday, the Financial Regulatory Bureau of Shenzhen, the Shenzhen Central Sub-branch of the People\u2019s Bank of China, and the Shenzhen Development and Reform Commission also jointly issued a warning that investors should be vigilant of illegal financial activities relating to crypto and how to avoid being scammed.<\/p>\n The notice states that virtual currency trading and speculation \u201cseriously endanger\u201d the safety of people\u2019s property and breed gambling, illegal fundraising, fraud, pyramid schemes, money laundering, and other illegal and criminal activities. It also claims that they disrupt the country\u2019s economic and financial order.<\/p>\n The financial authorities cited a statement published in September last year by China\u2019s central bank, the People\u2019s Bank of China (PBOC), and 10 ministries and commissions declaring that virtual currency is not legal tender and related activities are illegal financial activities.<\/p>\n What do you think about the state-run newspaper publishing a warning about bitcoin\u2019s price sinking to zero and the Chinese regulators warning about illegal crypto activities? Let us know in the comments section below.<\/strong><\/em><\/p>\nState-Run Newspaper Warns About Bitcoin Becoming Worthless<\/h2>\n
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New Warning About Crypto by Chinese Regulators<\/h2>\n