Chinese state-owned banks have reportedly proven to surprise supporters of cryptocurrency companies by setting up shops in Hong Kong.
Chinese state-owned banks have reportedly proven to be surprise supporters for cryptocurrency companies setting up shop in Hong Kong ahead of the implementation of a new licensing regime for cryptocurrency exchanges in June.
Bloomberg reported on March 27 that Chinese banks, including Shanghai Pudong Development Bank, the Bank of Communications Co., and Bank of China Ltd., have either begun to offer banking services to cryptocurrency firms in the region or have contacted crypto firms.
According to one account, a Chinese bank sales representative even went to the headquarters of a cryptocurrency company to promote banking services. All of this is true despite China’s ongoing prohibition on cryptocurrencies.
In response to a request for comment, Julia Pang, head of banking relations at the Hong Kong-based cryptocurrency trading platform OSL, stated that her company welcomed “increasing interest from Chinese banks in collaborating with the regulated crypto business.” She said:
“This development is encouraging for both the industry and the broader ecosystem, as it demonstrates a maturing understanding of the crypto sector by traditional financial institutions,”
A company representative declined to respond when asked whether the company had had any inquiries from state-owned Chinese banks. The Hong Kong Securities and Futures Commission on February 20 presented a proposal for a regime for cryptocurrency exchanges, slated to take effect in June, after the region’s government raised the notion of presenting its own bill to regulate cryptocurrencies in October of last year.
It is also believed that representatives from the China Liaison Office have been attending crypto events in the region, according to a report dated February 20.
