Thursday, June 1, 2023

Hong Kong Regulator Urges Banks to Open Accounts for Crypto Firms


The Hong Kong Monetary Authority (HKMA). The region’s central banking body and regulator, has urged banks to provide services to crypto companies.

On April 27, the Hong Kong Monetary Authority published a report on the use of banking services by business customers. In the document, the regulator asked the authoritative agency, dubbed “AI,” to take action on risk for its financial protection.

Above all, HKMA also asked Hong Kong institutions to monitor the development of the industry and take a forward-looking stance towards new areas such as the crypto industry. Bank of Hong Kong specifically requires institutions to assist virtual service providers (VASPs) in obtaining banking services:

“Authorities, to support banking institutions’ regulatory requirements for VASPs licensed and regulated. The Securities and Futures Commission should work in Hong Kong.
Decree Law No.
emphasized that customer due diligence (CDD) measures must be compatible with the customer’s risk in order not to burden the customer. MAS said the government and anyone who just wants to open an account for their own business must have the services before approval.

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“[License officials] should consider the ‘approval in principle’ provided by the relevant organizations to VASP license applicants in the CDD process, rather than doing nothing before issuing actual VASP licenses.”

The news comes as Hong Kong prepares to adopt new crypto regulations that will allow retail traders to buy and sell cryptocurrencies like bitcoin


and ethereum

4 41 $
4 price drop. The new cryptocurrency license is scheduled to be implemented on June 1, 2023.

Related: Chinese state banks collaborating with crypto companies in Hong Kong

The United States partially blocked the industry. Many major exchanges, including Coinbase, have decided to leave the US.

According to a report by Andreessen Horowitz, the share of cryptocurrency developers around the world in the US will drop by 26% from 2018 to 2022.

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