Swiss financial giant UBS Group has raised concerns to its clients over the nature of the crypto markets and recent regulatory developments, Business Insider reported Monday.

In a note that circulated last week, UBS' global wealth management team said the latest bout with regulators in China had negatively impacted prices and operators.

"Regulators have demonstrated they can and will crack down on crypto," said UBS in its note. "We suggest investors stay clear and build their portfolio around less risky assets."

The denouncement from the bank runs contrary to prior reports UBS was in the early stages of exploring ways it could offer crypto to wealthier clients, though that was before China began its attacks against the crypto industry by ordering miners to close shop and banks to block bitcoin transactions.

"We've long warned that shifting investor sentiment or regulatory crackdowns could pop bubble-like crypto markets," said UBS.