Rumors of a China Bitcoin ban spread across Asian media.
Gate.io hit with $30 million loss from leveraged trading chaos.
Unverified reports spark fear, but no official word from China.
Rumors Spark Fear in Asia’s Crypto Markets
Unverified reports are making rounds in Asian media, suggesting that China may be planning a fresh ban—not on trading, but on Bitcoin ownership itself. While China has already banned crypto trading and mining, this new speculation pushes the narrative further. If true, it could mark one of the harshest stances yet from the Chinese government toward digital assets.
These rumors, although not confirmed by any official statement, have caused uncertainty among investors and crypto communities across Asia. Many analysts, however, are urging caution, noting that similar fears have circulated before without materializing into formal policy.
Gate.io Faces $30 Million Blow from Liquidation Glitch
Meanwhile, crypto exchange Gate.io is reeling from a major crisis. A bug or mishandling in its perpetual futures trading system reportedly led to massive, unintended liquidations. According to local sources, the platform now faces losses of up to $30 million.
Perpetual futures allow traders to bet on price movements with leverage. However, when markets swing quickly, this can lead to a liquidation cascade—where multiple positions are automatically closed due to insufficient margins. That appears to be exactly what happened here, sparking outrage and panic among affected users.
Gate.io has not released a full post-mortem but has acknowledged the incident and promised an investigation. If the losses are not reimbursed, it could impact the platform’s credibility and user trust long term.
NEW: Asian media outlets report unverified rumors of Chinese ban on owning Bitcoin, Gate. io faces $30M bill after perps liquidation fiasco.
Asia Express via Cointelegraph Magazine pic.twitter.com/1URbrHJ3Kz
— Cointelegraph (@Cointelegraph) June 6, 2025
Market Braces for Clarity
Until official confirmation emerges, the China Bitcoin ban remains speculation. However, it serves as a stark reminder of the region’s regulatory unpredictability. Combined with the Gate.io incident, the crypto atmosphere in Asia feels tense and uneasy.
Investors are advised to stay informed and diversify risk while awaiting further developments. Both events underscore the high-stakes nature of crypto trading in a volatile regulatory landscape.
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