Swiss multinational banking giant UBS says watchdogs have demonstrated they can and they will crack down on cryptocurrencies, Business Insider reports. The Zürich-based bank also suggested investors to stay away from risky assets.
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"We have long warned that shifting investor sentiment or regulatory crackdowns could pop bubble-like crypto markets," the bank added.
UBS admits that the prospect of large gains "may tempt investors." However, the bank's strategists think speculation in cryptocurrencies is a gamble, not an investment. UBS says investors looking for exposure to cryptocurrencies can consider fintech instead, which the bank expects to "benefit from structural growth."
Earlier in April, ConsenSys, a blockchain-focused company, raised $65 million from JPMorgan, Mastercard, and UBS. With the investments, ConsenSys will continue its commercialization of industry leading platforms as distribution channels for decentralized finance (DeFi) protocols.
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