The Challenge of Opening Bank Accounts for Crypto Companies in Hong Kong
A report from the Hong Kong Economic Journal reveals that crypto companies in Hong Kong are facing difficulties in obtaining corporate bank accounts, despite the government’s efforts to establish the territory as a crypto hub. The director of commercial and customer services at Hang Seng Bank, owned by HSBC, stated that while licensed crypto companies can open a bank account, it will only be a “simple” one. Limited staffing at the Securities and Futures Commission and reluctance from banks are contributing to this challenge.
Key Points:
- Crypto companies in Hong Kong struggle to open bank accounts due to limited staffing at the Securities and Futures Commission and banks’ reluctance.
- Hong Kong’s Monetary Authority has urged major lenders to accept crypto exchanges as clients.
- HSBC and Standard Chartered have expressed engagement with the crypto industry and regular dialogue with regulators.
- Currently, OSL and Hash Blockchain are the only licensed virtual asset trading platforms in Hong Kong.
Despite the absence of a ban on offering services to crypto firms, crypto companies continue to face challenges in opening bank accounts in Hong Kong. The Hong Kong Monetary Authority has encouraged major banks to accept crypto exchanges as clients. However, limited staffing and banks’ reluctance remain obstacles. The two licensed virtual asset trading platforms in Hong Kong are OSL and Hash Blockchain.
Hot Take:
Hong Kong’s aspiration to become a crypto hub is hindered by the difficulty faced by crypto companies in opening bank accounts. While the government and the Monetary Authority have been proactive in promoting the industry, the limited availability of banking services hampers the growth and development of the crypto sector in the territory. It is crucial for banks to embrace crypto exchanges as clients and provide comprehensive banking solutions to support the industry’s expansion.
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