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Swiss Financial giant USB Group has expressed worry about the recent regulatory crackdown on Bitcoin (BTC/USD) and the nature of the crypto markets.

The firm circulated a note last week, saying that the latest regulatory bout in China has hurt operators and prices.

 “Regulators have demonstrated they can and will crackdown on crypto,” USB stated, pointing out the recent fluctuation in crypto prices due to the crypto Bitcoin crackdown.

The bank suggested that investors should be wary of crypto investments and rather shift their investments to less risky assets.

The announcement is in contrast with the bank’s disposition when it was exploring how clients can explore the opportunities the crypto industry brings.

However, that was before the recent attacks by the Chinese government against the crypto industry.

Last month, the Chinese government came hard on Bitcoin when it banned any sort of mining activities in the country. The impact of the ban saw many miners finding their way out of the region to establish a more favorable environment. China defended its decision by pointing out the environmental impact of mining. The government also mentioned the investment risks and propensity of fraud with cryptocurrencies as another reason for its decision.

Many crypto analysts and investment experts have entered the debate about Bitcoin mining’s environmental issue. But UBS is one of the investment firms that have openly warned their clients about the danger.

According to the bank, regulatory crackdown and the shifting investor sentiment can lead to bubble-like crypto markets.

The global wealth management team at UBS stated that regulators have shown their capacity to crack down on cryptocurrency. As a result, it is a warning that an additional regulatory push could worsen the downward pressure of Bitcoin and cryptocurrencies.

UBS did not dispute the fact that the market could still experience a further bullish movement. However, it reiterated that the speculative market could bring more challenges and risks than expected.

While UBS acknowledged that further crypto gains could be possible, it emphasized the risks the speculative asset class could pose more risk to professional investors.

The post UBS thinks the recent regulatory crackdown could be bad for Bitcoin (BTC) appeared first on Invezz.

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