- China has issued another warning on crypto.
- The reminder comes as investors in the mainland area are embracing digital assets.
- It also follows a massive rally by Bitcoin toward its all-time high price level.
China’s government has reiterated its crypto ban policy, warning its citizens about the risks of investing in digital assets as interest in Bitcoin remains strong in the country.
The latest warning comes after the Dalian Supervision Bureau of China Securities Regulatory Commission issued a similar stark reminder on February 20, urging Chinese nationals to enhance risk prevention awareness by “cautiously” avoiding crypto trading speculation.
China Issues Crypto Ban Warning as Bitcoin Rallies
According to a South China Morning Post report, a Chinese state-owned media publication has warned investors to “stay cautious” about Bitcoin-related products, reminding them that the country continues to enforce a ban on crypto trading.
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The report cited Beijing-based lawyer Xiao Sa, stating that the sweeping ban on crypto extended to overseas Bitcoin ETFs and that investors in the mainland area were not allowed to purchase such products directly. Sa further said that dealers of such products could not offer “relevant financial products to Chinese citizens.”
The warning follows Bitcoin’s massive 48.98% monthly rally in February, which saw the crypto asset’s price reach a new yearly high. This has sparked surging interest from investors in mainland China, who have remained active despite the government’s rigid stance against crypto.
Per the report, Bitcoin featured as a trending search last week on multiple Chinese online platforms, including microblogging site Weibo and multipurpose app WeChat, where the term’s popularity has surged more than fourfold.
Besides BTC’s price jumps, China’s stock market has taken a hit amid an economic slowdown, making cryptocurrency-related activities attractive to investors. Last year, China’s underground crypto market recorded $86.4 billion in raw transaction volume, shadowing Hong Kong’s $64 billion crypto trading volume.
Read about China’s first CBDC money laundering case:
China Cracks Down on First CBDC Money Laundering Case
Stay updated on Chinese officials’ cold wallet bribe allegations:
Chinese Officials Take Cold Wallet Bribes Despite Crypto Ban
