UBS does not exclude the continuation of a major correction in its bitcoin regulation
Swiss Bank UBS will not engage in commercial transactions with bitcoin or cryptocurrency to offer to retail customers, since the increase in regulation in this area may lead to a serious fall in the value of the instrument from current levels, said in an interview with “Bloomberg TV” the Chairman of the Board of Directors of the credit institution’s Axel Weber at the world economic forum in Davos.
“If for one reason or another, the result of future regulation or other government decisions will become harder to hide the transaction, then there will a major correction down, and then those who own bitcoin or buy it for a high price, will suffer losses”, – he said.
Weber pointed to the fact that bitcoin has a very low elasticity of supply, so any increase in demand directly leads to higher prices and Vice versa. “This is an area where the situation is uncertain. We fear that in the future if these investments collapse, and the market will experience a correction, then investors will find out who sold them the tools,” he explained.
On Wednesday afternoon, the bitcoin, which is still in the middle of December was more expensive than 20 thousand dollars per unit, is trading below $ 11 thousand dollars amid investors ‘ concerns about the strict regulation of the stock market in South Korea – one of the most important markets for trade cryptocurrencies.
On Tuesday, the media reported that South Korea will be banned anonymous cryptotrading. Innovations come into force since January 30. Now for cryptocurrency trading, every trader is obliged to identify themselves using a Bank account. In addition, the report noted that the accounts are owned by foreigners and minors will be blocked for transactions with cryptocurrencies.