The People’s Bank of China (PBC) has warned citizens against investing in cryptocurrencies despite the severe fluctuations and losses seen by global markets.
The central bank has continued its anti-crypto narrative in a post published on PBC’s WeChat account on March 22.
The warning came amid the worst losses seen by financial markets since 1929, which led investors to look for alternatives and safe havens to protect themselves from fluctuations and losses.
Bank officials warned the public against cryptocurrencies, pointing to the three key scams found on crypto exchanges. The bank stated:
“First of all, the amount of fraud transactions with bots is serious. The average turnover rate of the top three overseas crypto currency exchanges is much higher than that of foreign licensed exchanges. Second, market manipulation exists in these exchanges where forced leveraged trading eventually causes the exchanges to explode. Third, money laundering is a big issue.”
The PBC also pointed out that it is not correct to say that Bitcoin is a safe haven, because it is too volatile.
It also warned the public against following the crowd to shield themselves.
Coronavirus outbreak halts crypto mine in china
Chinese authorities have placed a ban on local cryptocurrency exchanges in September 2017, and tried to crack down on cryptocurrency trading.
In early February, Cryptolydian reported that, amid the outbreak of Coronavirus, Chinese government has taken a series of measures to keep the situation under control, which caused a mining facility to shut down.
BTC.top CEO Jiang Zhuoer said all mining devices were forced to shut down at one of the mining farms he owns.
Companies across the nation are affected, with the existing control of quarantine, people stay where they are and cannot return to their work.
He claims that the mining farm staff has never stopped working and none of the maintenance personnel have ever left this area before the period of quarantine control.