Bitcoin Bull Run Imminent? Hong Kong Central Bank Issues Crypto Advisory For Banks

Bitcoin News: Bitcoin (BTC), the world’s largest digital asset price went on to recover from 2022’s lows to regain the crucial $30K price level in the presence of erupting banking crisis. However, Hong Kong which is aiming to become a new crypto hub for the globe will be issuing an advisory for the banks regarding cryptocurrency.

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According to Hong Kong Monetary Authority release, the institution has had discussions with banks and clarified that there is no such legal and regulatory requirement that prohibits banks from providing banking services to virtual assets (VA).

It added that Banks have been informed to cling to a “risk based approach” at the time of managing customer due diligence (CDD). It is advised to avoid unnecessary procedures and desist from adopting a “one-size-fits-all” approach to dismiss crypto related applications.

The Hong Kong Monetary Authority mentioned that as the pandemic comes to an end, several companies are keen to relocate and open bank accounts in the country. It is estimated that the banks might face an increase in demand for accounting opening applications. However, it is also expected that the banking institutions might reject applications due anti-money laundering (AML) reasons. Read More Bitcoin News Here…

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However, it is advised to the banks to differentiate in the level of risks involved to users and then apply proportionate CDD rules.

Bitcoin price recovered from the $19K level to regain the $30K level amid the banking crisis. BTC price is up more than 74% on the year to date (YTD) basis. It is expected that Hong Kong’s Central Bank advisory will lead investors seeking regulatory clarity to enter crypto.