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Hong Kong Authorities Facilitate Banking for Crypto Firms While US Shuts the Door – Asia Wins?

Source: Adobe / TTstudio

Hong Kong regulators are organizing a meeting between crypto firms and bankers in an effort to ease financing for the industry as the city aims to become a hub for virtual assets.

The round table, scheduled for April 28 at the Hong Kong Monetary Authority (HKMA), intends to “facilitate direct dialog” and “share practical experiences and perspectives in opening and maintaining bank accounts,” according to a new report by Bloomberg.

The HKMA and the Securities and Futures Commission (SFC), the two regulators supervising stablecoins and crypto exchanges, will jointly host the session.


Hong Kong’s Crypto Dominance Plan

In recent months, Hong Kong has unveiled a plan to position itself as a center for digital assets and Web3 firms.

Despite this, the sector struggles to establish proper banking relationships for even basic needs like payroll accounts due to strict know-your-customer and anti-money laundering rules.

A series of collapses in US crypto-friendly banks has further complicated banking for some firms.

Nevertheless, Chinese state-owned lenders have recently shown a growing interest in the sector, a surprising development considering China’s ban on most crypto-related activities.


Chinese Banks Show Interest in Crypto Services

Several Chinese state-owned banks’ branches in Hong Kong have begun offering services to local cryptocurrency companies or inquired about doing so, in recent months.

This move by state-owned lenders reflects China’s support for boosting the digital asset industry in Hong Kong.

Over 80 foreign and mainland Chinese companies have expressed interest in establishing a Web3 operation in Hong Kong, with new crypto regulations set to take effect in June.

Financial institutions such as Bank of China Ltd., Bank of Communication Co., and Shanghai Pudong Development Bank are among those offering services to digital currency firms or displaying interest in providing financial services to them.

These potential partnerships demonstrate how Hong Kong’s more liberal regulatory environment could make it an appealing location for Chinese banks exploring cryptocurrency.

The upcoming round-table discussion in Hong Kong is seen as a critical moment in the push for mainstream acceptance of cryptocurrencies.

The event provides an opportunity for industry players to collaborate and explore practical solutions to the challenges facing the sector.

Hong Kong’s dedication to the digital asset industry is evident through this recent development, signaling a significant step towards its goal of becoming a virtual asset hub.

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