Banking services offered to crypto firms in Hong Kong by major Chinese banks

Cryptocurrency firms setting up in Hong Kong ahead of the much-anticipated licensing regime for crypto exchanges, which is due to begin in June, have reportedly found some unexpected allies in Chinese state-owned banks. Shanghai Pudong Development Bank, the Bank of Communications Co., and Bank of China Ltd., have either started offering banking services to crypto firms in Hong Kong or have made inquiries with crypto firms, as per sources with knowledge of the matter. Also, a Chinese bank’s sales representative visited one crypto firm’s main office to pitch their services—despite the ongoing ban on cryptocurrency trading in China.

Julia Pang, head of banking relations at Hong Kong-based crypto trading platform OSL, encouraged the growing interest from traditional Chinese banks engaging with the regulated crypto industry. “This is a very positive sign for both the industry and its broader ecosystem,” she said in an interview. When asked about whether OSL had been approached by any state-owned Chinese banks, the company spokesperson could not provide a comment on the matter.

The government of Hong Kong has recently proposed its own legislation to regulate cryptocurrency, and the Securities and Futures Commission is slated to introduce its own regime in June of this year. This shows a maturing understanding of cryptocurrencies within traditional financial institutions.

A February 20 report has revealed that representatives from China Liaison Office have been attending many crypto-related events in Hong Kong. These gatherings provide further evidence of the increasing popularity of cryptocurrencies in the region.