Chinese state-owned banks are backing crypto firms in Hong Kong

Chinese state-owned banks are reportedly looking to provide banking services to crypto companies in Hong Kong. The region has seen an increase in activity after regulations on the crypto market were loosened.

Despite a crypto ban in China, state ownership in the country seems to be helping crypto firms to help in Hong Kong. The region has recently changed tactics on crypto, opening up new opportunities for the market and spurring an increase in business.

Bloomberg reports that these state-owned banks have contacted crypto firms in Hong Kong, including Bank of Communications, Bank of China and Shanghai Pudong Development Bank. Of course, only the Hong Kong branch of these banks does.

These banks are supposed to offer banking services to these firms. Bloomberg cites sources with knowledge of the matter. One source even said that representatives of a bank visited the office of one of these companies to detail the services.

The crypto community in Hong Kong is increasing its presence in the space. The banks are keen to involve themselves, despite mainland China’s crypto laws being quite strict.

Binance Accused of Advising Crypto Ban Bypass

Regarding the crypto ban in Mainland China, Binance staff and support volunteers have reportedly informed people how to circumvent the ban. CNBC reported the news and said that the official Chinese-language chat rooms of Binance indicate that this bypass is taking place.

CNBC translated messages from Discord and Telegram, saying some accounts were identified as Binance employees and volunteers. Some of their suggestions include forging bank documents or providing fake addresses, according to CNBC.

Companies flocking to Hong Kong

Hong Kong has made its intention to become a well-known crypto hub, with new rules to accommodate the market. Hong Kong’s Secretary of Financial Services and Finance revealed a few days ago that more than 80 crypto firms wanted to establish themselves in the region. The companies come from all over the world and the official said the crypto market and web3 were important.

However, some control is necessary, as Hong Kong is also a hub for crypto scams. Last year, losses from crypto fraud in the region doubled to $217 million, according to the South China Morning Post.