BITCOIN CRACKDOWN: Swiss bank UBS AG refuses to trade cryptocurrency
A MAJOR Swiss bank has announced it will not be trading bitcoin and will not offer the cryptocurrency to retail clients amid speculation increased regulation could spark a “massive” drop in value.
By DARIUS MCQUAID
Express.co.uk
Wed, Jan 24, 2018
UBS AG Chairman Axel Weber said the bank will not trade or offer bitcoin as he warned there are fears the investments could “implode”.
Speaking at the World Economic Forum in Davos, Mr Weber said: “This is something where the price is really unclear. We fear that in the future if these investments implode and the market corrects, then investors will be looking at ‘who sold us this?’”
It comes as authorities launch a crackdown on bitcoin amid fears of its criminal connections.
South Korea is currently debating a potential ban on bitcoin trading due to concerns over money laundering and tax evasion.
China is currently trying to cut down on the amount of bitcoin miners in the country as the cryptocurrency process is using up too much of the country’s electricity.
Mining is the processing of transactions in the digital currency system in which the records of current bitcoin transactions, known as a block, are added to the record of past transactions, known as the blockchain.
The European Commission said this month it may increase regulation of virtual currencies due to fears of a pricing bubble. Nordea Bank in Europe has banned its employees from trading bitcoin and other cryptocurrencies.
Mr Weber believes there is limited movement surrounding bitcoin, as an increase in demand results in an increase in price.
Mr Weber added the real estate section in Switzerland is yet another bubble waiting to burst.
He said that vacancy rates are increasing which will probably lead to some defaults on loans. That could lead to a “broader correction” in the real estate market.
Bitcoin is currently priced at $11,374.
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