Hong Kong Monetary Authority Urges Banks to Service Crypto Firms: Financial Times


Hong Kong Monetary Authority (HKMA), the city’s central bank, is urging lenders such as HSBC, Standard Chartered and Bank of China to provide services to crypto exchanges, according to a Financial Times report on Thursday.

The three banks were questioned by the HKMA, at a May meeting, on why they were not accepting crypto exchanges as clients, according to the Financial Times citing unnamed sources.

Stay in the know on crypto by frequently visiting Crypto News Today

Demand for banking services from Hong Kong crypto firms is on the rise, especially after the city introduced its new licensing regime for virtual asset service providers on June 1.
According to Hong Kong’s Secretary for Financial Services and the Treasury, in March, over 80 foreign and mainland China Web3 companies expressed interest in setting up shop in Hong Kong. These included crypto exchanges, Web3 security companies, blockchain payment companies, and software firms building blockchain infrastructure.

Quick Check: BTC

The May meeting was not Hong Kong regulators’ first attempt to have the local lenders open up to the crypto industry. In a letter published on April 27, HKMA deputy chief executive Arthur Yuen reminded financial institutes that “there is no legal and regulatory requirement prohibiting banks in Hong Kong from providing banking services to virtual assets related entities.”
“We have also reminded banks to adhere to a ‘risk-based approach’ when conducting customer due diligence and avoid unnecessary processes, and refrain from adopting a “one-size-fits-all” approach to reject account opening applications,” wrote Yuen.

After a flurry of crypto frauds and collapses in 2022, especially the implosion of FTX, financial institutions have grown more cautious about the risks in the crypto industry. U.K.-based HSBC in February reportedly blocked crypto asset purchases through its credit card, joining several U.K. lenders in imposing restrictions on the crypto sector.

Despite the overall cautious sentiment, some financial institutions have begun to venture into the crypto industry in Hong Kong. The Bank of China was among several Chinese state-owned banks that inquired about servicing local crypto firms, according to a March report by Bloomberg, while ZA Bank, the city’s largest online-only bank, started offering cryptocurrency conversion services in April through licensed crypto exchanges.CRYPTOCASTER® - DECENTRALIZED FREEDOM!
Read More at FORKAST

Please Read Essential Disclaimer Information Here.
© 2024 Crypto Caster provides information. does not provide investment advice. Do your research before taking a market position on the purchase of cryptocurrency and other asset classes. Past performance of any asset is not indicative of future results. All rights reserved.

Contribute to CryptoCaster℠ Via Metamask or favorite wallet. Send Coin/Token to Addresses Provided Below.
Thank you!
BTC – bc1qgdnd752esyl4jv6nhz3ypuzwa6wav9wuzaeg9g
ETH – 0x7D8D76E60bFF59c5295Aa1b39D651f6735D6413D
MATIC – 0x7D8D76E60bFF59c5295Aa1b39D651f6735D6413D
LITECOIN – ltc1qxsgp5fykl0007hnwgl93zr9vngwd2jxwlddvqt

You may also like