UBS, the Swiss banking institution, has issued a warning to its clients about the risks that regulatory crackdowns might cause the bubble-like crypto markets to collapse.

UBS Warns Clients Regarding Crypto Markets To Collapse:

According to a letter given to customers last week by big Swiss bank UBS, regulators throughout the world might eventually “pop bubble-like crypto markets,” putting digital assets excessively risky and inappropriate for professional investors.

“Regulators have shown that they can and will crack down on cryptocurrency. As a result, we advise investors to steer clear and structure their portfolios around less hazardous assets,” according to the letter. “We’ve long been concerned that shifting investor sentiment or governmental crackdowns may deflate bubble-like crypto markets.”

The Bank Advises Investors To “Steer Clear” Of Digital Assets:

According to a report released today by Markets Insider, UBS’s statement noted several recent events in the realm of crypto legislation. China’s huge crackdown on Bitcoin mining and digital assets is perhaps the most significant.

Miners in Chinese regions such as Sichuan, Yunnan, and Qinghai were pushed to halt their operations in June. Concurrently, the country’s central bank barred payment platforms and banks from engaging in cryptocurrency-related operations.

Congress And Cryptocurrency

Cryptocurrency specialists were recently called before a subcommittee of the United States Congress’ Oversight and Investigations Committee. Rep. Tom Emmer claimed that there is a lack of understanding of the potential hazards and advantages of digital assets. He advocated for the abolition of Bitcoin, claiming that it is “extremely volatile.”

UBS has issued a warning to investors not to invest in Bitcoin. According to the Swiss bank, the market is “contrary” to established financial regulations. 

UBS also stated that some cryptocurrency trading activities are ” in conflict with mainstream financial regulation” and endangers professional investors.