Hong Kong authorities urge banks to support licensed crypto companies

The city will introduce a new regulatory regime for such platforms starting June 1

28.04.2023 - 10:20

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3 min

What’s new? Representatives of the Hong Kong Monetary Authority (HKMA) urged financial institutions to provide services to regulated cryptocurrency companies. They explained that licensed firms have a “legitimate need for bank accounts” in the city. In a statement, the HKMA also recommended that banks train staff and form dedicated teams to support the digital asset sector while avoiding a “wholesale de-risking approach” that turns away new industries or certain nationalities.

Bloomberg’s material

What else is known? The Hong Kong authorities intend to allow retail investors to trade major cryptocurrencies such as BTC and ETH as part of a new crypto platform licensing regime due to be introduced on June 1.

In March, Hong Kong units of China’s Bank of Communication, Bank of China, and Shanghai Pudong Development Bank began exploring opportunities to provide services to local digital asset-oriented companies, and in April the city’s largest bank, ZA Bank, already began servicing such firms.

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The HKMA, the Central Bank, and the Securities and Futures Commission (SFC) will hold a roundtable discussion for banks and virtual asset platforms to exchange views on account opening and other useful information on April 28. HKMA Deputy Chief Executive Arthur Yuen reported this.

Earlier, the Hong Kong authorities allocated $50 million to develop the Web 3.0 ecosystem. At the time, Hong Kong Financial Services and the Treasury Bureau (FSTB) Secretary Christian Hui said the city is “well-positioned” to become a leading Web 3.0 hub in Asia and beyond.

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