China’s latest move to tighten crypto regulation is not new, says HSBC

China’s latest move to tighten cryptocurrency regulation is not a “new development,” according to Paul Mackel, global head of FX research at HSBC. “There’s been some messaging there for some time. This is not a new development, as far as I’m concerned, they’ve been more cautious on cryptocurrencies,” he told CNBC’s “Street Signs Asia” on Monday.

He added that Beijing’s recent attempt is not in direct conflict with the country’s intent to launch its own digital yuan, the so-called the Central Bank digital currency (CBDC) which aims to replace some cash in circulation. “I don’t think there’s necessarily a conflict with the e-CNY whenever it will be launched, it’s a very different digital currency, so to speak,” he said, using an abbreviation for the electronic Chinese yuan. “I think there’s probably other issues right now — the degree of speculation, volatility and what does that mean in terms of the environment. These issues may have dominated their thinking lately.”

China’s latest move to tighten crypto regulation is not new, says HSBC, CNBC, May 24