Cryptocurrency firms setting up shop in Hong Kong ahead of a new licensing regime for cryptocurrency exchanges went into effect in June have found unexpected allies in the region: Chinese state-owned banks.
According to a March 27 Bloomberg report, Chinese banks, including Shanghai Pudong Development Bank, Bank of Communications Co. and Bank of China Ltd., have started offering banking services to crypto companies in Hong Kong or have consulted with crypto companiesaccording to “people with knowledge of the matter.”
One source claims that a sales representative from a Chinese bank even visited the head office of a crypto company to offer banking services. All this despite the current ban on cryptocurrencies in China.
Cointelegraph has reached out to Shanghai Pudong Development Bank, Bank of Communications Co., and Bank of China Ltd for further comment, but has not received a response prior to publishing this article.
When asked for comments on the matter, Julia Pang, head of banking relations at Hong Kong-based cryptocurrency trading platform OSL, told Cointelegraph that her firm welcomed “the growing interest of Chinese banks in engaging with the regulated crypto industry.”
“This development is encouraging for both the industry and the broader ecosystem, as it demonstrates a mature understanding of the crypto sector by traditional financial institutions,” he said.
A company spokesman said that They could not immediately comment on whether the company had been contacted by any state-owned Chinese banks.
In October last year, the Hong Kong government floated the idea of introducing its own bill to regulate cryptocurrencies, and the Hong Kong Securities and Futures Commission published a proposed regime for cryptocurrency exchanges on February 20.which will enter into force in June.
Christopher Hui, Secretary for Financial Services and the Treasury Bureau, delivers the opening keynote and reinforces HK government’s vision to develop the virtual asset sector in Hong Kong.
He mentions Web 3 presents a paradigm shift to the internet era. pic.twitter.com/9MGkWOCj0O— Everest Ventures Group (EVG) (@EVG_Ventures) March 20, 2023
Christopher Hui, Secretary for Financial Services and Treasury Office, delivers the keynote address, reinforcing the Hong Kong Government’s vision of developing the virtual asset industry in Hong Kong. He mentions that Web 3 represents a paradigm shift in the Internet age.
According to a report on February 20, it is also known that representatives from the China Liaison Office have been frequenting Hong Kong cryptocurrency meetups.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Keep reading:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the entire amount invested may be lost. The services or products offered are not directed or accessible to investors in Spain.