{"id":52187,"date":"2023-06-15T10:21:25","date_gmt":"2023-06-15T14:21:25","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=52187"},"modified":"2023-06-15T10:22:53","modified_gmt":"2023-06-15T14:22:53","slug":"hong-kong-banks-urged-to-accept-crypto-exchanges-as-clients","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/hong-kong-banks-urged-to-accept-crypto-exchanges-as-clients\/","title":{"rendered":"Hong Kong Banks Urged to Accept Crypto Exchanges as Clients"},"content":{"rendered":"\n

The Hong Kong Monetary Authority (HKMA)<\/a> banking regulator is pushing banks to embrace crypto exchanges to promote the city as a global hub for the crypto industry. However, banks are cautious due to regulatory uncertainties and potential risks.<\/p>\n\n\n\n

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According to a report by Reuters,\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a> the HKMA met with several lenders, including HSBC<\/a>, Standard Chartered<\/a>, and Bank of China<\/a>, last month and questioned their reluctance to accept crypto exchanges as clients. <\/p>\n\n\n\n

The HKMA stressed that due diligence on potential customers should not create an undue burden, especially for those setting up an office in Hong Kong to seek opportunities.<\/p>\n\n\n\n

However, banks are walking a fine line between supporting crypto and exchanges and complying with international standards. They fear possible prosecution if the platforms are used for money laundering or other unlawful activities. <\/p>\n\n\n\n

They are also wary of the US situation, where the Securities and Exchange Commission (SEC)<\/a> has sued Binance and Coinbase, two of the world's largest crypto exchanges, for violating US securities laws.<\/p>\n\n\n\n

Hong Kong aims to be a Crypto Hub<\/h3>\n\n\n\n

Hong Kong has a history as a crypto center, but its position diminished in the wake of Beijing's crypto crackdown<\/a>, which began in 2017. <\/p>\n\n\n\n

Nevertheless, Hong Kong has signaled that it wants to re-establish itself as a hub for the industry. <\/p>\n\n\n\n

The government said in October that it intends to create a “facilitating environment”<\/strong><\/em> for digital assets groups.<\/p>\n\n\n\n

As part of its efforts, Hong Kong has announced that it will implement a virtual asset service provider (VASP) licensing regime<\/use><\/svg><\/span><\/a> for crypto-asset activities conducted on exchanges by amending the Anti-Money Laundering and Counter-Terrorist Financing<\/use><\/svg><\/span><\/a> Ordinance. <\/p>\n\n\n\n

The new regime will require all trading platforms and exchanges to apply for a license, failing which would result in fines and jail terms.<\/p>\n\n\n\n

The HKMA is also monitoring the implications of crypto-assets from three dimensions:<\/p>\n\n\n\n