HSBC Introduces Local Cryptocurrency Services in Hong Kong

The largest bank in Hong Kong, Hong Kong and Shanghai Banking Corporation (HSBC), has reportedly introduced its first local cryptocurrency services.

HSBC has enabled its customers to purchase and sell Bitcoin and Ethereum-based exchange-traded funds (ETFs), according to a June 26 tweet by local journalist Colin Wu.

According to the report, HSBC will offer cryptocurrency ETFs listed on the Hong Kong Stock Exchange.

At publication, the exchange lists three crypto ETFs, including the CSOP Bitcoin Futures ETF, the CSOP Ethereum Futures ETF, and the Samsung Bitcoin Futures Active ETF.

The move seeks to increase Hong Kong users’ exposure to cryptocurrencies. As of March 2022, HSBC Hong Kong had 1.7 million active mobile consumers, according to online reports.

Reportedly, approximately 95% of HSBC’s retail transactions in Hong Kong are processed online.

The new services coincide with HSBC introducing the Virtual Asset Investor Education Center, as reported.

The initiative is designed to protect investors from the risks associated with cryptocurrencies by requiring them to review educational materials and risk disclosures before investing.

HSBC’s virtual asset-related products, such as the HSBC HK Easy Invest app, the HSB CHK Mobile Banking app, and online banking, offer access to the education center.

Several media reports from mid-June suggested that the Hong Kong Monetary Authority pressured significant banks to take cryptocurrency exchanges as clients.

The region’s central bank and regulator specifically questioned HSBC and Standard Chartered regarding their lack of cryptocurrency exchange clients.