Regulator meetings with bankers help Hong Kong’s crypto firms

Regulators meeting bankers help Hong Kong crypto firms enlist in this article

Bloomberg reported on Tuesday that the purpose of the meeting, which will take place on April 28 at the Hong Kong Monetary Authority, is to “share practical experiences and perspectives on opening and maintaining bank accounts” and “facilitate direct dialogue” 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 necessities such as payroll accounts.

Additionally, it comes at a time when many cryptocurrency companies are seeking new banking partners in light of the recent US banking crisis, 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 the Bank of Communications, Bank of China and Shanghai Pudong Development Bank, have either started offering banking services to local cryptocurrency businesses or have inquired about them. The development is seen as a sign that mainland China has supported Hong Kong’s recent move to become a major center for digital assets.

Cryptocurrency companies want to be in Hong Kong despite growing concerns about US regulations

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

The increase comes as the city has recently embraced a more crypto-friendly position in an effort to restore its status as a worldwide crypto hub and draw in more crypto organizations, explicitly those facing a troublesome time working from central China.

Retail investors will also be allowed to trade certain “large-cap tokens” on licensed exchanges, according to the regulator, subject to safeguards such as knowledge tests, risk profiles and reasonable exposure limits.

Meanwhile, the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) in the United States have launched a serious attack on the cryptocurrency industry.

Prior to 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 the betting service.