Hong Kong Regulators to Bring Crypto Firms and Banks Together

While regulators in the US have been tightening their grip over the crypto sector, Hong Kong is making a push in crypto looking at potential opportunities ahead. The latest development shows that Hong Kong regulators will be convening a meeting between HK-based crypto firms and bankers to ease the financing for the overall sector.

According to the details of the event accessed by Bloomberg, the roundtable shall happen next month on April 28th at the Hong Kong Monetary Authority which will facilitate “direct dialogue” and “share practical experiences and perspectives in opening and maintaining bank accounts”.

The HKMA and the Securities and Futures Commission will jointly hold the sessions, reported Bloomberg. These two are the same regulators that oversee crypto exchanges as well as stablecoins.

After several years of skepticism, Hong Kong took the plunge last year in September 2022 to become the center of crypto and Web3 firms in Asia. Since then, it has been actively working in this direction despite major crashes and bankruptcies over the last few months.

The biggest challenge ahead for HK regulators is establishing banking relationships and offering corporate accounts to crypto firms with proper KYC and AML rules.

Chinese Banks Helping Hong Kong-based Crypto Firms

Amid the banking crisis that unfolded in the US earlier this month, regulators have asked banks to reduce their crypto exposure. Rising up to the occasion are banks from mainland China that are extending help to Hong Kong-based crypto firms.

Sources familiar with the matter said that “the Hong Kong arms of Bank of Communications Co., Bank of China Ltd. and Shanghai Pudong Development Bank have either started offering banking services to local crypto firms or have made inquiries to the field”.

This shows that despite its ban on crypto trading a few years ago, China still continues to maintain interest in the emerging crypto sector.

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.

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