China-Owned Banks in Hong Kong Are Now Catering to Crypto Firms

China-Owned Banks in Hong Kong Are Now Catering to Crypto Firms

Time Stamp: March 27, 2023 6:44 AM
Source Node: 2033733
  1. China-backed banks in Hong Kong are now catering to crypto firms.
  2. Mainland China is still hostile toward crypto, while Hong Kong is aiming to become its hub.
  3. Major cryptocurrency exchanges are seeking operating licenses in Hong Kong as well.

Hong Kong branches of several banks backed by the Chinese government are suddenly turning friendly to cryptocurrency, according to an article by Bloomberg. 

In detail, the Bank of Communications Co., Bank of China Ltd., and Shanghai Pudong Development Bank are now offering services to crypto firms in Hong Kong. This is a significant development, as local companies in the crypto industry have traditionally had difficulty setting up corporate bank accounts.

The moves by these state-owned lenders reflect China’s support for boosting the digital asset industry in Hong Kong, as the city aims to regain its position as an international finance hub for digital assets and companies involved in developing the Internet through decentralized blockchains.

Hong Kong’s government is also actively supporting the development of the crypto sector, setting aside HK$50 million (US$6.37 million) to support it. Over 80 foreign and mainland China firms have expressed their interest in establishing Web3-based  operations in Hong Kong, ahead of new crypto regulations that will take effect from June this year.

While China banned crypto transactions on the mainland in September 2021, Hong Kong has been embracing the sector, releasing policy documents in October to support it. 

Tron founder Justin Sun seems to have made a related hint a couple of hours ago with a cryptic tweet.

Huobi Global, a multinational crypto exchange managed de facto by Sun, also filed a license to operate in Hong Kong. Other crypto exchanges such as Gate.io, OKX, and BitGet filed their respective license applications as well.

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Jesus covers news related to the crypto space in Asia and in Australia, although he follows the latest events in the US and Europe as well. He is most interested in the blockchain gaming and regulation aspects of the industry.

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