Coindesk Logo

UBS Says Regulatory Crackdown Could Pop 'Bubble-Like Crypto Markets': Report

UBS Says Regulatory Crackdown Could Pop 'Bubble-Like Crypto Markets': Report

UBS Says Regulatory Crackdown Could Pop 'Bubble-Like Crypto Markets': Report

Though it was looking to offer crypto to wealthier clients in May, the bank is now warning clients to avoid it altogether.

Though it was looking to offer crypto to wealthier clients in May, the bank is now warning clients to avoid it altogether.

Though it was looking to offer crypto to wealthier clients in May, the bank is now warning clients to avoid it altogether.

AccessTimeIconJul 6, 2021, 5:03 AM
Updated Aug 21, 2021, 6:49 PM

Presented By Icon

Election 2024 coverage presented by

Stand with crypto

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.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information have been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of the Bullish group, which owns and invests in digital asset businesses and digital assets. CoinDesk employees, including journalists, may receive Bullish group equity-based compensation. Bullish was incubated by technology investor Block.one.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.