Chinese banks show interest in Hong Kong crypto businesses

Allegedly, Chinese state-owned banks have become unsuspected allies for cryptocurrency firms that are opening up shop in Hong Kong ahead of the introduction of a new licensing framework for cryptocurrency exchanges in June. This development has come as a surprise.

According to a report that was published on March 27 by Bloomberg, Chinese banks such as Shanghai Pudong Development Bank, the Bank of Communications Co., and Bank of China Ltd. have either begun offering banking services to cryptocurrency companies in Hong Kong or have made inquiries with cryptocurrency companies, according to “people familiar with the matter.”

The offices of a cryptocurrency startup were reportedly visited by a sales representative from a Chinese bank, who presented the company with an offer of banking services. Despite China’s ongoing crackdown on cryptocurrency, all of this continues to go on.

Julia Pang, the head of banking relations at the Hong Kong-based cryptocurrency trading platform OSL, responded to a request for comment by saying that her organization welcomed the “growing interest of Chinese banks in working with the regulated crypto industry.”

“This development is promising for both the industry and the larger ecosystem, as it indicates conventional financial institutions’ increasing grasp on the cryptocurrency sector,” she added. “This development indicates conventional financial institutions’ increasing grasp on the cryptocurrency sector.”

A representative of the firm said that they were unable to comment on whether or not the company had been approached by any state-owned Chinese banks. The representative stated that this was because the company was unable to comment.

The Securities and Futures Commission of Hong Kong on February 20 presented a proposal for a regime for cryptocurrency exchanges, with the implementation date set for June.

The date of implementation was included in the proposal. In October 2017, the government of Hong Kong had discussions over the possibility of introducing its very own law to regulate cryptocurrency.

According to an article that was published on the 20th of February, it is also suspected that individuals from the China Liaison Office have begun attending crypto meetings in Hong Kong.