China Warned Against Bitcoin Trading This Time!

China's pressure on cryptocurrencies continues to increase. The government has warned against Bitcoin and altcoin transactions this time.

China has warned against Bitcoin trading this time. Regulatory pressure on cryptocurrency markets is increasing day by day. Previously, Indian Bank and card service providers warned investors against Bitcoin and altcoin transactions. Now a new warning has been made by China. Xinhua News, the official state press agency of the Chinese government, published an article today discussing the risks of Bitcoin trading.

Calls for Stricter Control on BTC Trading

Xinhua News published an article today that draws attention to the risks of Bitcoin trading. Earlier this week, the government announced that it was putting pressure on Bitcoin mining, and all cryptocurrencies, along with Bitcoin, were negatively affected. First, the authors of the publication started the article by explaining how leveraged trading works, noting that while this can result in large profits, the same can be true for losses if the market moves against a leveraged position. Xinhua gave the following statements by giving an example of Binance's screenshot: “What is shocking is the possibility of using a maximum leverage of 125x on some platforms.”

Emphasis on Controls

Xinhua also drew attention to the risk of crypto market manipulation and stated that local investors often use foreign currency to circumvent China's restrictions. In addition, several experts cited by Xinhua say citizens need to be trained to see and avoid risks when working with cryptocurrencies. Xinhua finally states the following in the article: “It is necessary to strengthen international regulatory cooperation and examine the latest, including the challenges of cross-border regulation of cryptocurrencies.”