Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
The banking regulator of Hong Kong is exerting influence on financial institutions in the city, including HSBC and Standard Chartered, to onboard cryptocurrency exchanges as clients, despite regulatory actions in other regions.
During a meeting last month, the Hong Kong Monetary Authority (HKMA) inquired with the UK-based banks and Bank of China regarding their hesitance to form partnerships with cryptocurrency exchanges, as reported by the Financial Times, which referenced three sources familiar with the situation.
Hong Kong Encourages Banks to Accept Crypto Clients
In a letter dated 27 April, HKMA advised the banks to avoid placing an undue burden on prospective clients during their due diligence procedures, particularly for those looking to establish a foothold in Hong Kong to pursue regional opportunities.
While Hong Kong banks have not prohibited clients involved in cryptocurrencies, the report indicated that there is reluctance to engage with exchanges due to fears of potential legal repercussions if the platforms are used for illegal activities such as money laundering.
“HKMA urged the banks to not be apprehensive. There is resistance stemming from a traditional banking perspective… We are observing some pushback from senior leaders at conventional banks,” stated a source familiar with the issue.
Related Posts
This pressure highlights the challenges Hong Kong encounters in its ambition to become a key player in the global cryptocurrency landscape, despite several notable industry failures, including the collapse of FTX.
ADVERTISEMENT
Welcoming Crypto
Hong Kong’s commitment to the cryptocurrency sector is evident in its readiness to support the industry, even as other regulatory authorities, such as the U.S. Securities and Exchange Commission (SEC), take action against major entities like Binance and Coinbase. Earlier this month, the SEC initiated legal proceedings against these international exchanges, alleging violations of U.S. securities regulations.
Nevertheless, Hong Kong’s business-friendly government has adopted a supportive stance towards cryptocurrency, acknowledging the potential advantages of the industry and actively working to position itself as a center for the sector.
Recently, Hong Kong introduced a new licensing framework for cryptocurrency platforms to draw more companies in the industry to the region.
SPECIAL OFFER (Sponsored) Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).
PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO50 code to receive up to $7,000 on your deposits.
