Hong Kong Regulators to Facilitate Meeting Between Crypto Firms and Banks Next Month

Bhushan Akolkar
March 28, 2023
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Hong Kong SFC Crypto Spot ETF

While regulators in the US have been tightening their grip over the crypto sector, Hong Kong is making a push in crypto looking at potential opportunities ahead. The latest development shows that Hong Kong regulators will be convening a meeting between HK-based crypto firms and bankers to ease the financing for the overall sector.

According to the details of the event accessed by Bloomberg, the roundtable shall happen next month on April 28th at the Hong Kong Monetary Authority which will facilitate “direct dialogue” and “share practical experiences and perspectives in opening and maintaining bank accounts”.

The HKMA and the Securities and Futures Commission will jointly hold the sessions, reported Bloomberg. These two are the same regulators that oversee crypto exchanges as well as stablecoins.

After several years of skepticism, Hong Kong took the plunge last year in September 2022 to become the center of crypto and Web3 firms in Asia. Since then, it has been actively working in this direction despite major crashes and bankruptcies over the last few months.

The biggest challenge ahead for HK regulators is establishing banking relationships and offering corporate accounts to crypto firms with proper KYC and AML rules.

Chinese Banks Helping Hong Kong-based Crypto Firms

Amid the banking crisis that unfolded in the US earlier this month, regulators have asked banks to reduce their crypto exposure. Rising up to the occasion are banks from mainland China that are extending help to Hong Kong-based crypto firms.

Sources familiar with the matter said that “the Hong Kong arms of Bank of Communications Co., Bank of China Ltd. and Shanghai Pudong Development Bank have either started offering banking services to local crypto firms or have made inquiries to the field”.

This shows that despite its ban on crypto trading a few years ago, China still continues to maintain interest in the emerging crypto sector.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.