Hong Kong’s largest banking institution, HSBC, has recently started allowing its customers to buy and sell Bitcoin exchange-traded funds (ETFs) listed on the Hong Kong exchange. This makes HSBC the first bank in Hong Kong to enable its customers to invest in crypto-derivative products like the CSOP Bitcoin Futures ETF, CSOP Ethereum Futures ETF, and Samsung Bitcoin Futures Active ETF. The move has been celebrated as a significant milestone in expanding local users’ exposure to cryptocurrencies.
To further support this new development, HSBC has launched the Virtual Asset Investor Education Centre. Investors must read and confirm the educational materials and risk disclosures available in this center before investing in any virtual asset-related products through the HSBC HK Easy Invest app, HSB CHK Mobile Banking app, and online banking.
The landscape in Hong Kong has recently seen regulators pressuring banks to coordinate more closely with local crypto firms. Earlier this month, the Hong Kong Monetary Authority (HKMA) questioned giants such as HSBC and Standard Chartered regarding their reluctance to accept crypto clients. It seems that regulators are now succeeding in their efforts to persuade giant banks to serve customers interested in crypto investments.
Banks were advised by the HKMA to conduct due diligence on crypto companies without imposing excessive burdens, particularly for firms establishing a presence in the region to explore available opportunities. Despite not having an outright ban on cryptocurrencies, major banks have historically been hesitant to serve crypto clients. Concerns about potential legal repercussions if these clients engage in money laundering or other illegal activities through crypto platforms often contribute to banks’ apprehension.
The current atmosphere in Hong Kong presents a delicate balancing act for banks operating in the area. On one hand, they receive encouragement to support cryptocurrencies and exchanges. However, they must also remain vigilant about the situation in the United States, given its stance on crypto-related matters.
Despite the potential risks in offering crypto-related services, HSBC’s step towards servicing the cryptocurrency community may prove to be a game-changer. As the first bank in Hong Kong to enable its customers to buy crypto-derivative products, the institution’s actions can impact the overall perception towards cryptocurrencies in the region.
Source: Coingape
