Hong Kong Opens 2nd Meeting To Promote Bank Acceptance Of Virtual Asset Providers

Key Points:

• Hong Kong regulators are still trying to promote the relationship between banks and companies providing services related to virtual assets.
• This is the 2nd meeting in less than two months of regulators with banks with ambitions of becoming the new crypto hub.
• Cryptocurrency companies have found it challenging to achieve banking services due to strict customer and anti-money laundering rules and a crackdown by US regulators.

According to Bloomberg News, people familiar with the matter said Hong Kong’s financial regulators held a meeting on Monday to bring together banks, crypto platforms, and other industry participants to focus on solving the problems encountered.

This will be the second conference since the end of April to promote greater banking participation, highlighting the difficulties crypto companies face when accessing banking services. About 20 banks and a similar number of crypto-related firms attended the roundtable addressing banking needs at that time, according to the HKMA. Next week’s meeting will cater to those absent from the opening chat.

A Hong Kong Monetary Authority (HKMA) spokesman said the central bank had, in fact, “maintained close dialogue with the banking industry and stakeholders on various topics from time to time.” Still, he declined to comment discussion of the scheduled meeting. A spokesperson for the Hong Kong Securities and Futures Commission, the regulator of cryptocurrency exchanges, declined to comment.

Cryptocurrency companies have needed help achieving banking services due to strict customer and anti-money laundering rules. The crypto industry is under global criticism from regulators, including the US Securities and Exchange Commission, putting pressure on lenders while remaining more cautious than usual. Banks must now tighten their censorship of crypto companies to avoid legal risks.

Hong Kong this month rolled out a new licensing regime for paying crypto exchanges, but banking access. The talent shortage and crisis affecting the industry are hampering the city’s ambitions.

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