Hong Kong crypto firms see interest from Chinese banks: Report
Crypto firms setting up in Hong Kong ahead of a new licensing regime for crypto exchanges in June have reportedly found some unexpected allies in the region – Chinese state-owned banks.
According to a March 27 report by Bloomberg, Chinese banks including Shanghai Pudong Development Bank, Bank of Communications Co. and Bank of China Ltd., either started offering banking services to crypto firms in Hong Kong or made inquiries to crypto firms, according to “people with knowledge of the matter.”
One source claims that a Chinese bank sales representative even visited a crypto firm’s headquarters to pitch banking services. All this despite an ongoing crypto ban in China.
Cointelegraph reached out to Shanghai Pudong Development Bank, Bank of Communications Co. and Bank of China Ltd for further comments, but did not receive a reply prior to publication.
Asked for comment, Julia Pang, head of banking relations at Hong Kong-based crypto trading platform OSL, told Cointelegraph that her firm welcomed “increasing interest from Chinese banks to engage in the regulated crypto industry.”
“This development is encouraging for both the industry and the wider ecosystem, as it demonstrates a growing understanding of the crypto sector by traditional financial institutions,” she said.
A spokesperson for the firm said it could not yet comment on whether the firm had been approached by any state-owned Chinese banks.
Related: Hong Kong wants to become crypto hub despite industry crisis
In October last year, the Hong Kong government floated the idea of introducing a separate bill to regulate crypto, and on February 20, Hong Kong’s Securities and Futures Commission submitted a proposal for a cryptocurrency exchange regime, which will come into effect in June.
Christopher Hui, Secretary for Financial Services and the Treasury Bureau, delivers the opening speech and reinforces the HK Government’s vision to develop the virtual asset sector in Hong Kong.
He mentions that Web 3 presents a paradigm shift to the internet era. pic.twitter.com/9MGkWOCj0O— Everest Ventures Group (EVG) (@EVG_Ventures) March 20, 2023
According to a February 20 report, representatives from the China Liaison Office are also understood to have visited crypto collections in Hong Kong.
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