Hong Kong regulators host meeting between crypto firms and local banks (Report)

Hong Kong regulators host meeting between crypto firms and local banks (Report)

Hong Kong financial regulators will reportedly host a meeting between domestic cryptocurrency companies and bankers. The initiative could facilitate funding for the industry as the region strives to become a global hub for digital assets.

Hong Kong-based crypto firms have reportedly received support from leading Chinese banks in recent weeks, despite authorities in the most populous country overwhelmingly opposing the asset class.

Another step towards the crypto goal

AsreportedFrom Bloomberg, the HKMA and the Securities and Futures Commission plan to “facilitate direct dialogue” between local cryptocurrency companies and banking institutions to “exchange practical experiences and perspectives on opening and maintaining bank accounts.”

The meeting, aimed at forging closer ties between the two sectors, is scheduled for April 28 at the Hong Kong Monetary Authority.

The meeting comes at a time when several banking institutions in the US, such as Signature Bank and Silicon Valley Bank (SVB), revealed operational difficulties and were shut down by regulators. Both companies had several crypto clients affected by the closures.

AsCryptoPotatoreportedEarlier this week, the Hong Kong subsidiaries of Bank of China, Bank of Communications and Shanghai Pudong Development Bank have already started offering their services to domestic digital asset companies.

Beijing's positive stance contrasts with the central bank and government's ban on all cryptocurrency operationsenforcedin 2021.

Is Hong Kong’s push into crypto bullish?

Hong Kong authorities recently unveiled plans to transform China's special administrative region into a blockchain hub. Shepraisedto legalize cryptocurrency retail and design a friendly regulatory framework for the industry.

According to BitMEX co-founder – Arthur Hayes – such a move could trigger the next bull market. He argued that a potential rally will be further stimulated if China intervenes:

"Hong Kong's friendly rebalancing towards crypto suggests China will reassert itself in crypto capital markets. If China loves crypto, the bull market will return. It will be a slow process, but the red shoots are sprouting."

Hayes believes that the current economic turmoil prevailing around the world could force the country to allocate its supply of US dollars, earned through its massive exports, to an alternative market. Warming up to crypto could be a possibility, the American entrepreneur concluded.

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