The Swiss financial giant, UBS, last week issued a communication to its customers that touches on the delicate issue of cryptovalute, advising them to pay particular attention in approaching the purchase. The reason? First of all, the standards approved (or in the process of being approved) in some countries at an international level, which regulate their sale.
Cryptocurrencies and risk factor: UBS preaches caution
In fact, the group recommends to bet on at least for the moment other assets for the composition of the portfolios, thus protecting their savings from risks which now go beyond volatility.
Lawmakers have proven they can target cryptocurrencies and they will. We advise investors to stay away from it and build their portfolios based on less risky assets.
The focus is particularly on what is happening in China, where some provinces have opted for a turn of the screw on the operations of mining related to Bitcoin, primarily for reasons related to sustainability. In the past, UBS has considered the hypothesis of supporting some of its wealthiest clients in the choice of digital currencies to invest in, while now it even refers to bubbles ready to burst.
We have long warned of the shift in investor sentiment and regulatory constraints that could burst bubbles in crypto markets.
Categories: Digital Economy