Major Chinese banks in Hong Kong are offering their services to cryptocurrency companies, a welcome response to digital businesses looking to expand their activity in the city's market.
Hong Kong's Bank of Communications, Shanghai-Pudong Development Bank and Bank of China are among Hong Kong banks that have offered support to cryptocurrency companies that are currently active or planning to open an office in the region.
According to Bloomberg, these financial institutions, which are among the most important in the country, are directly contacting crypto companies to offer their financial services.
In addition, other entities such as the virtual bank ZA Bank have also expressed interest in Web3.
Hong Kong's banking sector sees growth opportunity in crypto industry
Several cryptocurrency business and company leaders have confirmed the support they are receiving from banks in Hong Kong.
Sung Min Cho, CEO and founder of Web3 company Beoble, said Bloomberg said that the city is experiencing an important moment. “It means a lot to us because it’s something you would never expect at this time, even around the world.”, Min Cho said, referring to the current banking crisis largely caused by the harsh monetary policies implemented by central banks.
An executive at a major Chinese bank in Hong Kong, who asked not to be named to disclose private information, said the local credit situation represents a major opportunity for market growth.
China had been less receptive to cryptocurrency trading
China's banking sector had initially been less receptive to trading in cryptocurrencies and digital assets, a situation that representatives of crypto companies and businesses had mentioned to Bloomberg.
But the sector's shift appears to be driven by new policies and regulations that Hong Kong is pushing to regain its status as a global financial hub. Hong Kong aims to once again become an international financial headquarters for digital asset companies, in order to boost technological development and innovation.
Hong Kong's Secretary for Financial Services and Treasury, Christopher Hui, recently noted that There are more than 80 cryptocurrency companies interested in establishing themselves in the city of Hong Kong, before new crypto regulations come into effect starting in June this year.
Separately, in late February, Bloomberg reported that top Chinese officials had been involved in digital asset-related events in the city, quietly supporting Hong Kong's plans to become a global crypto financial and innovation hub.
In this way, the current support that the crypto industry is finding in a significant part of Hong Kong's banking institutions is a fact that, without a doubt, has a lot of value and that returns to the region. an increasingly attractive and friendly jurisdiction for blockchain businesses, despite the Chinese authorities' ban on crypto assets since mid-2021.
Hong Kong has set aside $50 million to invest in Web3
Hong Kong's financial secretary Paul Chan mentioned last month that $50 million has been set aside to boost the Web3 ecosystem. This figure was announced by Chan during the city's budget speech for the 2023-2024 period.
Starting in June, Hong Kong will implement new regulations that are friendlier to the cryptocurrency industry and will open the doors to retail investors and traders to access this growing market. So far, only professional and institutional investors have access to crypto assets in the region.
Continue reading: Hong Kong attracts over 80 crypto industry companies
