UBS Warns Crypto Buyers Can Lose All Money
Shutterstock
Main page News, Crypto Market, Cryptocurrency, Regulations
Hot topic
15 January
295 295

UBS's global wealth management advisory division warns: cryptocurrency buyers could lose all the money as regulatory changes can crash prices down to zero, Bloomberg reports.

Subscribe to our Telegram channel to stay up to date on the latest crypto and blockchain news

While the crypto prices may rise in the short-term, the Swiss firm says in the long run the industry faces existential risks over regulatory uncertainty:

"There is little in our view to stop a cryptocurrency’s price from going to zero when a better designed version is launched or if regulatory changes stifle sentiment," the analysts with Michael Bolliger, Chief Investment Officer of Emerging Markets at UBS Global Wealth Management wrote in a report.

The analysts cite Netscape and Myspace as examples of such sort of applications that "enjoyed widespread popularity but eventually disappeared." In the meantime, bitcoin (EXANTE: Bitcoin) is struggling with high price swings as BTC drops over 12% in a day. As of press time, bitcoin is trading at $36 256.

UBS Exec Expresses Skepticism About Cryptocurrency

Bitcoin's local dip comes amid news that Coinlab, North American bitcoin transactions operator for the notorious cryptocurrency exchange Mt.Gox, has reached an agreement with Mt.Gox creditors over the bitcoin case. According to the company, the agreement with Nobuaki Kobayashi, the trustee to the Mt.Gox bankruptcy, will allow creditors to claim as much as 90% of 137,891 BTCs related to the Mt.Gox's hack.

Access more than 50 of the world's financial markets directly from your EXANTE account – including NASDAQ, London Stock Exchange and Tokyo Stock Exchange.

Read also:
Please describe the error
Close