Hong Kongurged banks to provide services to licensed virtual asset firms as part of its effort to become a crypto hub.
Hong Kong Monetary Authority,Deputy Chief Executive Officer late Thursday Arthur YuenHe said banks should support regulated virtual asset businesses with their legitimate need for bank accounts in the city.
Special Teams Will Be Established to Support the Industry
Hong Kong Monetary AuthorityIn a statement, lenders were ordered to train staff and form dedicated teams to support the digital asset industry, to avoid a wholesale hedging approach that turns new industries down.
One of the biggest challenges facing crypto companies globally is the market crash and FTX they became more and more skeptical about the industry after troubles such as bankruptcy. Crypto friendly Signature BankAnd Silvergate Capital Corp.The collapse of . in this year’s US banking crisis was a huge blow to companies, forcing the industry to scout for alternative payment channels.
A long period of turmoil has led the US to increase regulatory pressure on the crypto industry and has warned of the liquidity risks that result from it.
A growing number of virtual asset businesses are considering exiting the US economy, while other projects plan to expand outside the US. In turn, Hong Kong will allow retail investors to trade crypto assets like Bitcoin and Ethereum with a new regulation for crypto platforms on June 1.
With this, Bank of Communications, Bank of ChinaAnd Shanghai Pudong Development Bankstarted offering banking services to local crypto firms.
Hong Kong’s largest virtual bank ZA Bankplans to offer token-fiat currency conversions through licensed exchanges.
Executive Vice President Arthur YuenMoreover, Hong Kong Monetary Authoritywith Securities and Futures Commissionfor lenders and virtual asset platforms to exchange views on account opening and other useful information 28 AprilHe said he would host a meeting in
