Hong Kong’s banking regulator reportedly held a meeting with the city’s top lenders and currency issuers – HSBC, Standard Chartered and Bank of China – over the lack of crypto clients being accepted.
During a meeting in May, the Hong Kong Monetary Authority (HKMA) questioned HSBC, Standard Chartered and Bank of China about why they were not accepting crypto exchanges as clients, according to a «Financial Times» report citing multiple unnamed sources.
In addition to being issuers of Hong Kong’s currency, the three lenders also hold the chair and two vice-chair posts at the Hong Kong Association of Banks, a local lobby group.
Industry Resistance
According to one anonymous source with knowledge of the discussion, there is «some resistance from senior executives at traditional banks».
Another source noted that banks in Hong Kong are having to «tread a fine line between, on the one hand, getting encouragement to support crypto and exchanges, but, on the other hand, being aware of the US situation», referring to escalating regulatory pressures against the likes of Binance and Coinbase.
«Undue Burden»
According to an April 27 letter from HKMA to the banks, due diligence should not «create undue burden» for potential customers, especially those «setting up an office in Hong Kong to look for the opportunities here».
On June 1, Hong Kong introduced its new licensing regime for crypto platforms which allows for access to retail trading.
