China’s State-Owned Banks Become More Crypto-Friendly

Check out the specifics about how China's state-owned banks are becoming more crypto-friendly

Bloomberg reported on Monday that several branches of China's state-owned banks in Hong Kong have begun providing services to local cryptocurrency businesses and become crypto-friendly. This comes as the city welcomes a growing number of digital asset and cryptocurrency businesses seeking to relocate or expand there.

According to a Bloomberg report that cited sources familiar with the situation, the Hong Kong entities of Bank of Communications Co., Bank of China Ltd., and Shanghai Pudong Development Bank have either begun offering services to local crypto firms or inquired about the matter.

Neighborhood organizations in the crypto business have customarily experienced issues setting up corporate ledgers, and the moves of these state-claimed loan specialists mirror China's moving in attempting to support the advanced resource industry in Hong Kong, as per the report.

Cryptocurrency transactions will be prohibited in mainland of China in September 2021, whereas Hong Kong has embraced the sector with the release of policy documents in October. Through Web3 or decentralized blockchains, the city aims to regain its position as a global financial center for digital assets and Internet-related businesses.

Christopher Hui, Hong Kong's Secretary for Financial Services and the Treasury stated last week that more than 80 companies from mainland China and overseas have expressed an interest in starting a Web3 operation in Hong Kong ahead of new crypto regulations that will go into effect in June.

Last month, the Monetary Secretary of Hong Kong, Paul Chan, expressed that the public authority would contribute HK $50 million (US $6.37 million) in the area, which he depicted as a "once in a lifetime chance" to lead creative turn of events.