Hong Kong brings bankers, crypto firms together

Hong Kong’s financial watchdogs are set to host a meeting to bring bankers and crypto firms together on April 28, according to a report by Bloomberg News.

With the meeting, the Hong Kong Monetary Authority (HKMA) and the  Securities and Futures Commission of Hong Kong (SFC) hope to develop a feasible and effective banking solution for the crypto firms in the region, as the Bloomberg News article noted.

According to HKMA, the upcoming meeting aims “to facilitate direct dialog” and “share practical experiences and perspectives in opening and maintaining bank accounts.” Neither regulator shared any additional information about the upcoming meeting, but they noted that they are maintaining dialogue with the stakeholders

Hong Kong on crypto

The planned meeting is a part of Hong Kong’s desire to establish itself as a crypto hub. Despite China’s anti-crypto stance, Hong Kong has been taking significant steps to increase crypto adoption. The crypto sphere has been hearing news from Hong Kong almost every two weeks since the beginning of the year.

After the FTX fallout motivated Hong Kong to compose a new regulatory framework, Hong Kong announced that the new regulations were ready to come into effect in June 2023. In February, the region legalized crypto trading, opened a consultation service to help regulate crypto exchanges, and spared $50 million to accelerate Web3 development in Hong Kong.

In March, Hong Kong said over 80 crypto-related businesses said they were interested in setting up shop in the region since February. On March 27, state-owned banks located in Hong Kong also said they were looking to attract crypto businesses to cooperate with.

China vs. Hong Kong

Contrasting Hong Kong’s initiatives, China maintains its apathy toward crypto. The country banned crypto mining in 2021 and hasn’t promoted crypto since — except for its central bank digital currency (CBDC) digital yuan.

However, China hasn’t been making any moves to halt the development of Web3 in Hong Kong either. According to certain crypto executives, this is because the country is looking to catalyze the crypto development in Hong Kong.

The current regulatory setting in Hong Kong includes strict rules which provide a sense of security and confidence to the investors. This serves Hong Kong well in its goal of becoming a significant crypto hub in the Asian region.