Hong Kong pushes HSBC to serve crypto exchanges: FT

According to Financial Timesthe hongkong regulators are urging local banksof which HSBC and Standard Charteredto accept customers dealing with crypto such as exchanges.

Against the grain of most jurisdictions, Hong Kong pushes the financial institutions to serve cryptocurrency exchange platformreports FT on Thursday, citing people close to the case.

In May, the central bank of the former British colony asked HSBC and Standard Chartered, as well as Bank of Chinathe reasons why they did not accept crypto exchanges as customersaccording to sources.

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The Hong Kong Monetary Authority told banks that the due diligence should not create a excessive burden for customers setting up an office in Hong Kong.

Although they do not completely prohibit themselves from serving crypto customersinstitutions are showing caution with the players in this new sector. Repeated bankruptcies, including that of FTX, and other scams in 2022 have naturally not reassured them.

Hong Kong began rolling out new regulations for the crypto industry this month. Announced last autumn, it aims to frame and encourage the development of crypto in the city-state by offering, among other things. licensing system for platforms. Rules for stablecoins are also in preparation.

The central bank has encouraged banks not to be afraid. There is resistance from a conventional banking mindset,” commented one of the sources.

Recently, a Hong Kong legislator invited the world’s crypto exchanges to move in in the independent territory in southeast China.

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“I hereby offer a invitation to welcome all global virtual asset trading operators, including Coinbase , to come to HK for the application of official trading platforms and new development plans.” tweeted last Friday Johnny Ng, member of Hong Kong’s Legislative Council.

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