With the
deadline for changes to cryptocurrency regulations in Hong Kong (HK) rapidly
approaching, an increasing number of companies and digital asset exchanges are
seeking a local license and setting up branches in the special administrative
district. Meanwhile, banks operating in the area, including China-owned Bank of
Communications, are vying for potential customers.
In a move
that will be crucial in supporting day-to-day operations for cryptocurrency
businesses, banks in Hong Kong have started offering deposit accounts to these
companies.
At a time
when the United States is shutting down cryptocurrency-linked banks and
tightening the regulatory screw on exchanges operating in the country, Hong
Kong has decided to loosen its crypto bans and is beginning to build a digital
asset hub in this part of the world in early June.
The Wall
Street Journal has
reported that ZA Bank, a virtual bank operating in HK, and China-owned Bank of
Communications are among those seeking to provide fiat currency deposit and
withdrawal services to licensed cryptocurrency companies. The money belonging
to exchanges and their customers will be held in segregated accounts.
As many as 80 companies are queuing up to join the local industry and the web3 ecosystem,
according to news reports in March, which confirmed a change in cryptocurrency
regulations on the operations of digital asset companies and their provision…
