Hong Kong puts pressure on banks to accept crypto exchanges as customers: FT
Hong Kong puts pressure on banks to accept crypto exchanges as customers: FT
The Hong Kong bank supervisory authority exerts pressure on the banks of the city state, including HSBC and Standard Chartered, to take over crypto exchanges as customers, although there are strict regulation measures in other parts of the world.
At a meeting last month, the Hong Kong Montary Authority (HKMA) interviewed the companies based in Great Britain and the Bank of China to build up relationships with cryptocurrency exchanges, as can be seen from a report by the Financial Times, in which three people were cited with the matter.
Hong Kong urgently calls on banks to accept crypto customers
In a letter dated April 27, the banks pointed out that they should not impose potential customers during their DUE diligence process, especially those that build up a presence in Hong Kong to look for regional options.banks in Hong Kong have no ban on customers who have to do with cryptocurrencies. The report, however, states that it is cautious when working with stock exchanges, as there are concerns about possible law enforcement if the platforms are used for illegal activities such as money laundering.
"HKMA encouraged the banks not to be afraid. There is resistance from conventional bank mentality ... We see a certain resistance from the leading employees of traditional banks," said a person familiar with the matter.
This pressure is reminiscent of the obstacles with which Hong Kong is faced with his efforts to develop into an important player in the global cryptocurrency industry, despite a series of shocking industry implosions, including the decline of FTX.
crypto hug
Hong Kong's enthusiasm for the cryptocurrency industry is willing to devote itself to the sector, despite measures of other regulatory authorities such as the US stock exchange regulator SEC (Securities and Exchange Commission) towards large actors such as Binance and Coinbase. At the beginning of this month, the SEC took legal action against these global stock exchanges and accused them of violating US securities laws.
Nonetheless, the economic -friendly government of Hong Kong has taken a positive attitude towards cryptocurrencies, recognized the potential advantages of the industry and actively tries to establish itself as a turntable for the sector.
Hong Kong recently introduced a new license system for cryptocurrency platforms to lure more companies in the industry into the city.
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