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Hong Kong authorities encourage banks to offer services to cryptocurrency firms

Hong Kong crypto firms seeing interest from Chinese banks

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TL;DR

  • Digital virtual companies have faced difficulties in obtaining banking services in Hong Kong.
  • The Hong Kong Monetary Authority has reminded banks to adopt a “risk-based approach.”
  • The HKMA clarified that banks in Hong Kong have the green light to provide banking services to entities dealing with virtual assets.

Recently, the Hong Kong authorities reminded financial institutions that no cryptocurrency firms had been banned. As a result, the authorities are encouraging banks to offer services to these firms.

On Thursday, the de facto central bank of Hong Kong acknowledged complaints from digital virtual companies regarding difficulties they face in obtaining banking services, such as opening bank accounts within the jurisdiction. Crypto companies have reported challenges in securing such services from banking institutions.

In a recent column published on the Hong Kong Monetary Authority’s (HKMA) website, deputy chief executive Arthur Yuen clarified that banks in Hong Kong have the green light to provide banking services to entities dealing with virtual assets (VA).

He emphasized that no legal or regulatory barriers prevent such transactions, paving the way for increased accessibility to VA-related services in the region.

Arthur Yuen stressed that the HKMA had reminded banks to adopt a “risk-based approach” when conducting due diligence for VA-related entities. He emphasized that a “one-size-fits-all” approach to rejecting account opening applications should be avoided. Instead, banks should exercise caution and consider each VA-related entity’s unique characteristics and circumstances before deciding.

Yesterday, the Hong Kong Securities and Future Commission (SFC) announced that they would unveil comprehensive guidelines regarding the regulation of cryptocurrencies in May. This eagerly awaited report follows months of anticipation within the crypto community and is set to clarify the regulatory landscape of digital assets in Hong Kong.

As the SFC prepares to take the lead in regulating this emerging industry, many stakeholders hope these guidelines will usher in a new era of legitimacy and stability for cryptocurrencies in the region.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Mutuma Maxwell

Maxwell especially enjoys penning pieces about blockchain and cryptocurrency. He started his venture into blogging in 2020, later focusing on the world of cryptocurrencies. His life's work is to introduce the concept of decentralization to people worldwide.

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