HSBC says the latest move by China to clamp down on cryptocurrencies is not new, CNBC reports. Global FX research chief Paul Mackel says Beijing has been more cautious on cryptocurrencies for some time.
Mackel doesn’t see China’s actions as a deterrent to its proposal to come up with a digital yuan.
The analyst sees issues such as the degree of speculation, volatility, and impacts on the environment as key considerations of China’s crackdown on cryptos.
Mackel’s comment follows Friday’s statement in which China proposed to tighten controls of the crypto markets to protect the financial system.
China has stated concerns of bitcoin mining and trading behavior as key concerns in a move to tame the cryptocurrency industry.
In 2017, China accelerated crackdowns on digital tokens when regulators halted the operation of bitcoin exchanges in the country.
Crypto wallet Ballet’s CEO and founder Bobby Lee doesn’t see bitcoin losing momentum due to China’s crackdown and expects digital tokens to rise in coming months.
Major cryptocurrencies are currently gaining. BTCUSD is up 5.05%, ETHUSD is up 7.57%
