Hong Kong Sets Sights On Crypto Dominance With Unprecedented Move To Ease Financing For Virtual Assets

Zinger Key Points
  • Hong Kong aims to become a hub for digital assets and Web3 firms.
  • Stringent know-your-customer (KYC) and anti-money laundering rules pose challenges for the crypto industry.

Hong Kong is taking measures to position itself as a hub for virtual assets, as the city's regulators plan to hold a round-table discussion between cryptocurrency firms and bankers on April 28.

What Happened: The Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) are jointly organizing the session "to facilitate direct dialog" and "share practical experiences and perspectives in opening and maintaining bank accounts," Bloomberg reported.

Hong Kong has been skeptical of the cryptocurrency industry for years but recently unveiled a plan to make itself a center for digital assets and Web3 firms.

The industry has been grappling with the challenge of establishing proper banking relationships, including basic needs such as payroll accounts, due to strict know-your-customer (KYC) and anti-money laundering regulations.

A recent series of U.S. cryptocurrency-friendly bank collapses, such as Silicon Valley Bank, has added to the difficulties of finding banking for some firms.

Also Read: Massive Crypto Crime Wave Uncovered: The Jaw-Dropping Truth Behind Billions In Hacks And Scams

Nevertheless, a growing interest among Chinese state-owned lenders in the sector, which has surprised the industry since China has banned most crypto-related activities.

While the HKMA and SFC did not comment on any details, they confirmed a dialogue with stakeholders.

Why It Matters: The round-table discussion aims to "ease financing for the sector" and establish Hong Kong as a hub for virtual assets. The session will provide an opportunity for cryptocurrency firms and bankers to share experiences and perspectives, particularly on the challenges of opening and maintaining bank accounts.

This dialogue is crucial in fostering a better understanding between the two sectors and improving banking relationships in the industry.

Read Next: Bitcoin Liquidity Drops To 10-Month Low — Panic Selling To Follow?

Photo: leungchopan via Shutterstock

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Posted In: CryptocurrencyNewsGlobalMarketsCrypto ExchangesCrypto firmsDigital AssetsHKMAHong KongSFCStablecoinsvirtual assetsWeb3 firms
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