• The Hong Kong Monetary Authority (HKMA) has sent a letter to HSBC, Standard Chartered, and the Bank of China urging them to consider accepting crypto exchanges as customers.
• Certain lawmakers in Hong Kong are demonstrating a more receptive stance towards crypto firms, such as Johnny Ng’s invitation for Coinbase to establish its operations in the region.
• Banks may be hesitant about embracing crypto companies due to concerns over potential legal challenges in cases of fraudulent activities.
Hong Kong Authorities Urge Three Major Banks to Embrace Crypto Exchanges
According to sources familiar with the matter and a letter, the Hong Kong Monetary Authority (HKMA) is applying pressure on HSBC, Standard Chartered, and the Bank of China to consider accepting crypto exchanges as clients.
Positive Moves by HKMA and Lawmakers
Hong Kong has recently shown aspirations to become a prominent global crypto hub, as evidenced by the acceptance of applications for crypto trading platform licenses by its Securities and Futures Commission (SFC) starting June 1. Certain lawmakers from Hong Kong are demonstrating a more receptive stance towards crypto firms. On June 10, Johnny Ng, a member of the Hong Kong Legislative Council, publicly expressed his support for Coinbase, a crypto firm facing challenges.
Banks Hesitant Due To Potential Legal Challenges
The relationship between banks and crypto companies globally has been complex, with instances of payment processors severing ties with local exchanges in India and reports of Australian banks blocking payments to crypto exchanges. Although no ban on crypto clients exists, banks may be cautious due to concerns over potential legal challenges in cases of fraudulent activities.
No Immediate Response From Banks or HKMA
At the time of reporting, HSBC, Standard Chartered, the Bank of China, and the HKMA had not provided immediate comments on the matter. However, HSBC and Standard Chartered stated that they regularly evaluate their compliance policies.
The HKMA is pushing three major banks in Hong Kong – HSBC,, Standard Chartered ,and Bank Of China –to accept cryptocurrency exchange services as customers despite some hesitation from traditional banking executives. The relationship between banks and cryptocurrency companies is complex due to various legal considerations concerning fraudulent activities.