Hong Kong Banking Giant HSBC Allows Customer to Buy BTC ETF

The latest report in the crypto town is that Hong Kong’s largest banking institution HSBC has started allowing its customers to buy and sell Bitcoin exchange-traded funds (ETFs) listed on the Kong Kong exchange.

The crypto ETFs currently listed on the Hong Kong exchange include the CSOP Bitcoin Futures ETF, CSOP Ethereum Futures ETF, and Samsung Bitcoin Futures Active ETF.

This also makes HSBC the first bank in Hong Kong to allow its customers to buy crypto-derivative products. Popular crypto journalist Colin Wu noted that the “move will expand local users’ exposure to cryptocurrencies in Hong Kong”.

SCOOP: HSBC, the largest bank in Hong Kong, today allows its customers to buy and sell Bitcoin and Ethereum ETFs listed on the Hong Kong exchange, and is also the first bank in Hong Kong to allow it. The move will expand local users’ exposure to cryptocurrencies in Hong Kong. pic.twitter.com/vH0LieSVGw

— Wu Blockchain (@WuBlockchain) June 26, 2023

In his reporting, Colin Wu further added: “At the same time, HSBC launched the Virtual Asset Investor Education Centre, investors need to read and confirm the educational materials and risk disclosures in the Virtual Asset Investor Education Center before investing in any Virtual Assets-related products through HSBC HK Easy Invest app, HSB CHK Mobile Banking app and online banking”.

Hong Kong Regulators Pressuring Banks

As per a report earlier this month, Hong Kong regulators have been pressuring banks to work in coordination with local crypto firms. The Hong Kong Monetary Authority (HKMA) also questioned giants like HSBC and Standard Chartered for their unwillingness to take crypto clients.

However, it seems that the regulators have now succeded in convincing the giant banks to serve their crypto customers.

The HKMA informed banks that they should conduct due diligence on crypto companies without imposing excessive burdens, especially for those establishing a presence in the region to explore opportunities.

Although there is no ban on cryptocurrencies, major banks remain reluctant to serve crypto clients due to concerns about potential legal consequences if these clients engage in money laundering or other illegal activities through crypto platforms.

Banks in Hong Kong have to face a delicate balancing act. On one hand, they receive encouragement to support cryptocurrencies and exchanges, but on the other hand, they must remain mindful of the situation in the United States.

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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.