Regulators Meeting with Bankers Helps Hong Kong’s Crypto Firms

Regulators meeting with bankers helps Hong Kong's crypto firms are enlisted in this article

Bloomberg reported on Tuesday that the purpose of the meeting, which is to take place on April 28 at the Hong Kong Monetary Authority, is to "share practical experiences and perspectives in opening and maintaining bank accounts" and "facilitate direct dialog" between the two parties.

The move comes as strict know-your-customer (KYC) and anti-money laundering (AML) regulations make it increasingly difficult for cryptocurrency businesses to open corporate bank accounts in the city, even for essentials like payroll accounts.

In addition, it occurs at a time when numerous cryptocurrency businesses are seeking new banking partners in light of the recent banking crisis in the United States, which saw the closure of three major crypto-friendly banks, including Signature Bank, Silvergate Capital, and Silicon Valley Bank.

According to reports, several Chinese state-owned Hong Kong banks, including Bank of Communications, Bank of China, and Shanghai Pudong Development Bank, have either begun providing banking services to local cryptocurrency businesses or inquired about them. The development is regarded as a sign that mainland China has backed Hong Kong's recent move to become a major center for digital assets.

Cryptocurrency Businesses Want to Be in Hong Kong Despite Growing Concerns About US Regulations

Christian Hui, Secretary for Financial Services and the Treasury in Hong Kong stated this past week that since October 2022, more than 80 digital asset-related businesses had expressed an interest in establishing a presence in the city.

The surge comes as the city has as of late embraced a more crypto-accommodating position in a bid to recover its situation as a worldwide crypto center point and draw in more crypto organizations, explicitly those confronting a troublesome time working from central area China.

Retail investors would also be permitted to trade certain "large-cap tokens" on licensed exchanges, according to the regulator, subject to safeguards like knowledge tests, risk profiles, and reasonable exposure limits.

In the meantime, the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) in the United States have launched a severe crackdown on the cryptocurrency industry.

Before this, the SEC had sent Coinbase a so-called "Wells notice" threatening the cryptocurrency exchange with legal action regarding some of its listed digital assets, Coinbase Earn, Coinbase Prime, and Coinbase Wallet, as well as its staking service.