April 25, 2023
By Sharan Kaur Phillora
Hong Kong’s ambitious goal to become a leading crypto hub has opened an opportunity for many state-affiliated banks in China. The Chinese banks, despite a blanket ban on crypto-related activities in mainland China, are showing interest in building partnerships and onboarding regulated crypto companies in Hong Kong.
Here’s what we know:
In addition to the Bank of Communications, ZA Bank – Hong Kong’s largest virtual bank controlled by Chinese internet insurer ZhongAn Online P&C Insurance – will also act as the settlement bank for the crypto companies.
These banks will together facilitate the depositing and withdrawal of fiat currencies, providing a vital service to crypto companies looking to operate in Hong Kong.
These banks’ involvement in the crypto industry is an excellent sign for Hong Kong, which has been trying to establish itself as a leading crypto hub for some time. At the start of the year, Hong Kong’s financial secretary, Paul Chan, clarified that the city is pushing to collaborate with more crypto firms in 2023.
The government’s progressive crypto approach has attracted nearly 80 cryptocurrency firms interested in opening or expanding their business in the city.
The Chinese banks’ interest in Hong Kong’s crypto industry is a positive development, demonstrating the potential for regulatory clarity in the region. Additionally, this move could encourage other regional banks to follow suit, strengthening Hong Kong’s position as a leading financial hub in Asia.
About the author
Sharan Kaur Phillora’s thirst for knowledge has led her to study many different subjects, including NFTs and Blockchain technology – two emerging technologies that will change how we interact with each other in the future. When she isn’t exploring a new idea or concept, she enjoys reading literary masterpieces.