Hong Kong, a bustling metropolis with a strong economic foundation, has been actively pushing for its transformation into a crypto hub. Despite the supportive stance of the local government, a web of challenges confronts crypto companies, notably the difficulty in opening corporate bank accounts, thereby hampering seamless transactions and general business operations.
An interesting insight from the Hong Kong Economic Journal states that the HSBC-owned, Hang Seng Bank, does offer the service of opening bank accounts to these crypto companies. However, such accounts are classified as “simple”, and the specific services denied to them remain shrouded in uncertainty.
Stirring discomfort among crypto startups is also the apparent slow pace of the Securities and Futures Commission, coupled with the banks’ unwillingness, drawing a veil of frustration across the digital asset market in Hong Kong. This is occurring despite the lack of a prohibition on banks to extend their services to crypto-related firms.
Changing the game, however, is the Hong Kong Monetary Authority (HKMA), urging significant lenders including HSBC, Standard Chartered, and Bank of China to extend their services and accept crypto exchanges as clients. The move promises a fruitful dialogue and marks a stride towards easing the roadblocks for crypto firms.
Adopting a participatory approach, HSBC has been engaging in active discussions with virtual asset players to discuss a spectrum of topics, inclusive but not limited to account opening, while also keeping abreast with the evolving policies specific to the rising digital field. Commendably, it is not just HSBC that’s narrowing the gap, as Standard Chartered too mirrors similar participatory discussions.
A notable highlight is the licensing of two virtual asset trading platforms by Hong Kong’s security regulator, OSL, and Hash Blockchain. This event, though scarce in occurrence, signifies a progressive shift.
In a nutshell, the path to establishing Hong Kong as a crypto hub seems to be laced with regulatory hiccups and financial barriers. However, with the progressive dialogues and easing regulations, one can hope that the road to digitization in Hong Kong will be smoother.
Source: Coindesk
