Reported Bloomberg, Chinese state-owned banks are extending services to cryptocurrency companies rushing into Hong Kong after the city opened its doors to the sector. Chinese banks in Hong Kong, including Bank of Communications, Bank of China, and Shanghai Pudong Development Bank, have either started offering banking services to local crypto firms or made inquiries into the field, according to insiders who asked not to be named. On at least one occasion, sales representatives from one Chinese bank even visited the office of a crypto company to pitch its services, said one person.
This support is noteworthy as the crypto sector has been shunned by major banks and faced difficulties in securing normal banking services, such as opening an account to pay staff and vendors. It's also an opportune time, with the lenders filling a void after the failures of US tech banks Silicon Valley Bank, Silvergate Capital Corp., and Signature Bank.
Hong Kong-based cryptocurrency firms have said that it takes up to three months to secure a corporate bank account, compared to one month for non-crypto businesses. The main reason for the delays is that the anonymous nature of cryptocurrency is viewed as a red flag by traditional banks, where KYC (know your client) procedures are standard for compliance.
A spokesperson for the The Hong Kong Monetary Authority said the authority has a dedicated team that follows up on inquiries from the business community, including the virtual asset industry, regarding bank account opening and maintenance matters.
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Policy and Regulation
