Cryptocurrency still hasn’t got the approval of the largest bank of Switzerland, UBS. They have their own concerns regarding the new asset and have advised investors to go for less risky assets. Switzerland’s bank UBS also warns crypto investors about the regulatory crackdown that might happen soon. And therefore, it is best to stay clear from cryptocurrencies altogether. Considering that they are the largest bank in Switzerland, let’s take a look at why they have taken such a negative stance against crypto.
Switzerland’s bank UBS’s take on crypto
The bank has published a report citing the example of the latest crypto crackdown in China. They said that the UK and US are slowly increasing their grip on cryptocurrencies and sooner or later will crack down on it. The bank also added that China’s crackdown had affected the price of crypto so much, imagine what will happen if the UK and US do the same thing. This is why they have advised investors to stay from crypto altogether.
UBS also mentioned that even other countries are increasing regulation as they warn crypto exchanges operating without any license. Binance has been on the radar of every nation and has already been given several warnings in Japan and UK. Even banks are not willing to work with crypto companies due to the regulatory uncertainties that exist.
This might be the bubble that Michael Burry has warned everyone about. If all the government’s crackdowns on crypto then, the markets won’t be able to sustain. But I personally think that is a pretty long shot for bears. The government won’t take such drastic steps but will surely bring new laws in place.
UBS is in the crypto market
Even though they have warned about the risks associated with crypto, the bank is considering the possibility of offering crypto services. This is due to the increased demand among wealthy investors. Hence, the bank might just provide the option to them. We should also note that other banks like JPMorgan, Goldman Sachs, Bank of America have offered crypto services, so why not UBS.
What are your thoughts on the fact that Switzerland’s bank UBS warns crypto investors about regulatory uncertainties? And do you think this will change anything for those who want to buy crypto? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.