CryptoMode

Despite the ban on cryptocurrency in China, several financial institutions in China have expressed interest in offering banking services to cryptocurrency firms in Hong Kong. 

These firms are setting up in Hong Kong before introducing a new licensing regime for cryptocurrency exchanges in June.

Chinese state-owned banks such as Shanghai Pudong Development Bank, Bank of Communications Co., and Bank of China Ltd. have either initiated banking services to crypto firms in Hong Kong or have inquired about doing so, according to individuals with knowledge of the matter, as reported by Bloomberg on March 27.

As per sources, one Chinese bank’s sales representative even visited the primary office of a crypto firm to market banking services, despite the ongoing crypto prohibition in China.

Last October, the Hong Kong government proposed introducing its bill to regulate cryptocurrency. 

On February 20, Hong Kong’s Securities and Futures Commission unveiled a proposal for a cryptocurrency exchange regime, which will come into effect in June. 

According to a February 20 report, representatives from the China Liaison Office have also been frequenting Hong Kong cryptocurrency gatherings.

This move is promising for the industry and the broader ecosystem as it indicates that conventional financial institutions are maturing in their understanding of cryptocurrency.

Moreover, it is another classic example of banks saying one thing and doing the opposite. In this case, it could benefit the cryptocurrency industry. However, the impact of this growing interest by Chinese institutions may not trigger any notable market shifts immediately. 

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