Crypto firms rushing into Hong Kong after the city opened its doors to the battered sector are finding a surprising source of potential support: China’s state-owned banks.
Chinese banks have been directly reaching out to crypto businesses over the past few months, adding to signs that the city’s push to become a major digital asset centre has backing from Beijing, even though trading of crypto has been banned on the mainland for well over a year. The Hong Kong arms of Bank of Communications, Bank of China and Shanghai Pudong Development Bank have either started offering banking services to local crypto firms or have made inquiries to the field, according to people with knowledge of the matter.
A cryptocurrency account at a tradfi bank is something groundbreaking. It can easily take three months for crypto-focused companies to secure a corporate bank account, compared to one month for non-crypto firms. This means firms often try out more than a dozen lenders, including niche choices such as Indian or Japanese banks, or virtual banks like ZA Bank. Even with an account, banks often flag transactions related to digital asset firms and can suddenly suspend accounts after an initial warning call.
Related news：
Hong Kong May Face Backlog in Crypto License Applications As Demand Grows, Former SFC Regulator Says
80 Crypto Firms Interested in Establishing Presence in Hong Kong, Official Says
All Comments