Swiss banking giant UBS has warned its clients that regulatory crackdowns could result in making Bitcoin unsuitable for professional investors. Citing China’s recent crackdown on mining, and the growing concern over crypto in the UK and US, UBS is advising clients to shy away from these risky assets.
To be precise;
“Regulators have demonstrated they can and will crack down on crypto,” the UBS note read. “So we suggest investors stay clear, and build their portfolio around less risky assets.”
Not to break it to the esteemed folks at UBS, but these same fears and concerns have circled Bitcoin (crypto) for years. It certainly is no secret that Bitcoin is looked upon as a distinct threat by central banks to their monetary polices and control. Indeed, China, the US Treasury Secretary Janet Yellen, the IMF, the World Bank, etc. have attempted to “jaw bone” (trash talk) Bitcoin into obscurity to no avail (sorry to inform them but BTC is NOT responsible for global warming, money laundering, fraud, crime or even cancer). The recent fast paced global acceptance by countries of Bitcoin is now causing a central banker panic.
So perhaps UBS reasoned it may generate some “government regulatory good will” by joining the Bitcoin “trash talking” club. Certainly if anyone knows regulators, or needs some favors, UBS tops the list. Their rap sheet and regulatory settlements are….well, quite stunning, and include tens of billions of dollars in fines for currency manipulation, manipulation of LIBOR rates, tax evasion, rogue trading and the list goes on from there.
So if regulatory crackdowns make Bitcoin unsuitable for investors, wouldn’t that same argument also cause hesitation in investing in UBS as well?
It’s interesting UBS notes Bitcoin may be unsuitable for professional investors nut NOT amateur investors. Go to it, Reddit chat room gang members.
Bill Taylor is a crypto market specialist and long time market veteran, and a frequent contributor to Digital Wealth News