China’s State Banks in Hong Kong Show Growing Acceptance of Cryptocurrencies: Bloomberg
Good news for the growing list of cryptocurrency and digital asset firms looking to expand or relocate to Hong Kong! According to a Bloomberg report, several branches of state-owned Chinese banks in Hong Kong have started offering services to local crypto companies. Bank of Communications Co., Bank of China Ltd., and Shanghai Pudong Development Bank are among the Hong Kong entities that have either made inquiries or started offering services to local crypto firms.
This is great news for local companies in the crypto industry, who have traditionally faced difficulties setting up corporate bank accounts. These moves by state-owned lenders reflect China’s backing in trying to boost the digital asset industry in Hong Kong.
It’s worth noting that China banned crypto transactions on the mainland in September 2021, while Hong Kong has been embracing the sector with the release of policy documents in October. The city aims to regain its position as an international finance hub for digital assets and companies involved in developing the Internet through decentralized blockchains, known as Web3.
It’s clear that the sector is gaining momentum in Hong Kong. Over 80 foreign and mainland China companies have expressed interest in establishing a Web3 operation in the city, ahead of new crypto regulations that will take effect from June, as Hong Kong’s Secretary for Financial Services and the Treasury, Christopher Hui, announced last week.
Hong Kong’s Financial Secretary, Paul Chan, has also recognized the potential of this sector, setting aside HK$50 million (US$6.37 million) to develop it. He sees this as a “golden opportunity” to lead innovative development. With the support of state-owned banks and government investment, it’s clear that Hong Kong is positioning itself as a leader in the growing field of digital assets.