Chinese State-Owned Banks Seek to Offer Services to Crypto Firms in Hong Kong
Chinese banks, including Shanghai Pudong Development Bank, the Bank of Communications Co., and Bank of China Ltd., have reportedly started offering banking services to crypto firms in Hong Kong, despite a crypto ban in China.
According to a Bloomberg report, inquiries with crypto firms have also been made. One source even claims a Chinese bank sales representative visited a crypto firm’s main office to pitch banking services.
Crypto firms in Hong Kong find unexpected allies
Crypto firms setting up in Hong Kong ahead of a new licensing regime for crypto exchanges in June have reportedly found unexpected regional allies – Chinese state-owned banks.
Despite China’s ongoing crypto ban, these banks have been seeking to offer services to crypto firms in Hong Kong, where the government floated the idea of introducing its own bill to regulate crypto in October last year.
Growing interest from Chinese banks
The interest from Chinese banks in engaging with the regulated crypto industry has been welcomed by the Hong Kong-based crypto trading platform OSL.
The firm’s head of banking relations, Julia Pang, said it is encouraging for both the industry and the broader ecosystem, as it demonstrates a maturing understanding of the crypto sector by traditional financial institutions.
Regulatory proposal for cryptocurrency exchanges in Hong Kong
The Securities and Futures Commission of Hong Kong proposed a cryptocurrency exchange regulatory regime set to take effect in June. It is also understood that representatives from the China Liaison Office have been frequenting Hong Kong crypto gatherings.