Hong Kong Regulator Reminds Local Banks There Is No Ban on Crypto Firms

Hong Kong is reminding banks that they can provide services to virtual asset companies amid complaints about the difficulty of opening bank accounts in the jurisdiction, its de facto central bank said on Thursday.

“There is no meşru and regulatory requirement prohibiting banks in Hong Kong from providing banking services to virtual assets (VA) related entities,” deputy chief executive of the Hong Kong Monetary Authority (HKMA) Arthur Yuen wrote in a column published on the regulator’s website.

Yuen wrote that the HKMA has reminded banks to adhere to a “risk-based approach” when conducting due diligence and refrain from one-size-fits-all approaches to rejecting account opening applications.

He acknowledges that some virtual businesses may present higher anti-money laundering risks and banks may be more cautious when processing account opening applications. He also notes that banking staff have less experience in dealing with new markets and may be turning customers away to avoid hassle.

Hong Kong has been giving virtual asset services providers more regulatory clarity in a bid to attract more companies to the jurisdiction.

The regulator released a circular on the same day to clarify best practices for offering banking services.

Recommended for you:

  • Bitcoin’s ‘Volatility Smile’ Shows Increased Demand for Bullish Exposure
  • Bitzlato, Binance and What Regulators Are Really Doing
  • Crypto Conglomerate Digital Currency Group Reports Loss of $1.1B in ‘Challenging’ 2022
  • Join the Most Important Conversation in Crypto and Web3 in Austin, Texas April 26-28
Interested  Brazil’s Central Bank Says Local B3 Stock Exchange Could Be Oracle of Its CBDC
Edited by Parikshit Mishra.

Comments are closed.

Verification: 3c77fa839e7c2e69