China continues to warn against the risks of investing in Bitcoin, even as the cryptocurrency’s price rallies past $60,000. In an article published Sunday, state-run media outlet Economic Daily advised investors to “stay cautious” about Bitcoin, noting it has yet to enter the mainstream.
The article comes despite Bitcoin’s surge above $64,000 briefly on Monday, its highest price since April 2022. China maintains a sweeping ban imposed in September 2021, forbidding all crypto trading and services on the mainland. This includes a ban on Chinese residents accessing services from overseas crypto exchanges.
Economic Daily cited Beijing lawyer Xiao Sa saying overseas Bitcoin ETF dealers cannot sell related products to Chinese investors due to the crypto trading and services ban. The ban was issued jointly by the People’s Bank of China, the Supreme People’s Court, and other authorities. Still, many mainland investors find workarounds to trade crypto abroad.
While the U.S. has allowed spot Bitcoin ETFs, China continues enforcing its prohibition amid Bitcoin’s rally. The state warning highlights China’s hostile stance towards cryptocurrencies, even as adoption grows in other major economies. Despite Bitcoin’s price hitting new highs, China remains cautious and advises investors to do the same.
