Chinese Investors Warned Against Bitcoin Investments

The Chinese state newspaper Jingji Ribao cautioned local residents about the risks of investing in the leading cryptocurrency. The article was published amid an ongoing rally in the crypto market. 

The publication mentioned the approval of Bitcoin ETFs in the United States and reiterated that trading digital assets remains prohibited in China. 

The article includes quotes from Beijing-based lawyer Xiao Sa, who stated that foreign dealers cannot sell such financial products to Chinese residents. Investors in mainland China are also not permitted to directly purchase these products.

In 2021, Chinese authorities effectively banned cryptocurrency trading. Digital asset traders face fines and even imprisonment.

Nevertheless, local investors’ interest in digital assets is growing amid economic challenges. In January 2024, Reuters confirmed the existence of a thriving underground crypto market in China.

At the end of the same month, the Hong Kong branch of Chinese asset manager Harvest Fund Management applied to launch a spot Bitcoin ETF.