Swiss multinational investment cyberbanking giant UBS has warned its clients that crypto assets are unsuitable for professional person investors if regulatory pressure continues.

In a note sent to clients concluding week, the global wealth management team at UBS said Mainland china's latest crackdown had injure crypto prices and operators, cautioning that farther regulatory pushback worldwide could exacerbate the downward pressure on digital nugget prices:

"Regulators accept demonstrated they can and will crackdown on crypto, then we suggest investors stay clear and build their portfolio effectually less risky assets. We've long warned that shifting investor sentiment or regulatory crackdowns could popular bubble-like crypto markets."

While UBS acknowledged that further crypto gains could be possible, it emphasized the risks the speculative asset class could pose to investors:

"While we tin't rule out future price gains in cryptos, we see this equally a speculative market place that poses meaning risks to professional investors."

The Swiss bank as well warned about leveraged trading, stating, "Crypto trading practices, such as extending 50X or 100X leverage, appear fundamentally at odds with mainstream finance regulation."

The renewed Chinese crackdown on Bitcoin mining operations, which began in tardily April, has seen mixed analysis from the crypto community, with some arguing the migration of hash ability from Communist china offers the Bitcoin (BTC) mining industry an opportunity to improve its ecological footprint and to further decentralize the network.

The banks see it differently, however, with UBS fearing that China'due south actions will create a cascade effect around the world from financial regulators.

UBS' prediction already appears to be coming true, with the United Kingdom'south Fiscal Conduct Dominance taking action against the world'south largest digital asset substitution, Binance, on June 27.

Related: Binance disappointed by Barclays' 'unilateral activeness' to cake client payments

A number of leading high street banks in the U.Grand., including TSB, NatWest and Barclays, have express their customers' access to crypto exchanges since the FCA took action against Binance in late June.

In May, Cointelegraph reported that UBS was rumored to be working on launching crypto trading services for wealthy clients.