Lenders should support regulated companies related to digital assets in meeting their banking needs. This is stated in statement HKMA Deputy Governor Arthur Yuen.
“There are no statutory and regulatory requirements prohibiting Hong Kong banks from providing services to entities associated with virtual assets,” the official noted.
The recommendation is part of an initiative by the Chinese Special Administrative Region to create conditions for the development and promotion of the Web3 ecosystem.
In the document, the regulator pointed out the need for staff training and the formation of special teams to support the digital asset sector. The HKMA has suggested avoiding a “risk mitigation approach” that excludes dealing with new industries or certain jurisdictions/nationalities.
In February, WSJ journalists drew attention to the fact that banks are stopping cooperation with crypto firms due to possible repression from regulators. The latter threaten to separate digital assets from the traditional financial system.
The FTX crash and the resulting industry events were the catalyst for regulators’ fears.
The situation was exacerbated by the reorganization of industry-friendly Silicon Valley Bank and Signature bank, as well as the liquidation of Signature Bank.
Amid problems finding partners among banks and regulatory pressure, many crypto firms, including Coinbase and Gemini, have not ruled out leaving the US for other jurisdictions.
In 2023, the Hong Kong authorities began to develop rules for licensing crypto exchanges and issuers of stablecoins.
Back in mid-April, media outlets reported that Hong Kong banks, including a division of China’s state-owned Bank of Communications, had begun accepting crypto companies as new customers. This position was publicly announced in the largest virtual bank ZA Bank.
Recall that Blofin Academy analysts admitted that the popularization of stablecoins in Hong Kong dollars could become a driver for the growth of bitcoin.
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Cryplogger Newsletters: Keep your finger on the pulse of the bitcoin industry!
Lenders should support regulated companies related to digital assets in meeting their banking needs. This is stated in statement HKMA Deputy Governor Arthur Yuen.
“There are no statutory and regulatory requirements prohibiting Hong Kong banks from providing services to entities associated with virtual assets,” the official noted.
The recommendation is part of an initiative by the Chinese Special Administrative Region to create conditions for the development and promotion of the Web3 ecosystem.
In the document, the regulator pointed out the need for staff training and the formation of special teams to support the digital asset sector. The HKMA has suggested avoiding a “risk mitigation approach” that excludes dealing with new industries or certain jurisdictions/nationalities.
In February, WSJ journalists drew attention to the fact that banks are stopping cooperation with crypto firms due to possible repression from regulators. The latter threaten to separate digital assets from the traditional financial system.
The FTX crash and the resulting industry events were the catalyst for regulators’ fears.
The situation was exacerbated by the reorganization of industry-friendly Silicon Valley Bank and Signature bank, as well as the liquidation of Signature Bank.
Amid problems finding partners among banks and regulatory pressure, many crypto firms, including Coinbase and Gemini, have not ruled out leaving the US for other jurisdictions.
In 2023, the Hong Kong authorities began to develop rules for licensing crypto exchanges and issuers of stablecoins.
Back in mid-April, media outlets reported that Hong Kong banks, including a division of China’s state-owned Bank of Communications, had begun accepting crypto companies as new customers. This position was publicly announced in the largest virtual bank ZA Bank.
Recall that Blofin Academy analysts admitted that the popularization of stablecoins in Hong Kong dollars could become a driver for the growth of bitcoin.
Found a mistake in the text? Select it and press CTRL+ENTER
Cryplogger Newsletters: Keep your finger on the pulse of the bitcoin industry!