Hong Kong’s financial market regulator insists that banking institutions help digital asset service providers by serving them as their customers.
The Hong Kong Monetary Authority (HKMA) is putting pressure on big banks to accept cryptocurrency exchanges as their customers. Banking giants HSBC, Standard Chartered, and the Bank of China were among the TradFi sector representatives approached by the regulator.
Earlier, at a meeting with representatives of these institutions, the regulator asked why they refused to serve cryptocurrency companies. The HKMA urged the banking giants to pay attention to the cryptocurrency market, take a more ambitious approach to the new financial sector, and “not be afraid.”
The HKMA requires banks to help virtual asset providers gain access to banking services. However, according to a report in the Financial Times, senior executives of traditional banks don’t support the initiative. Consequently, the regulator continues to engage in dialogue with TradFi and crypto companies to overcome disagreements and ensure the development of the industry.
The Hong Kong authorities are actively supporting the cryptocurrency market, while U.S. regulators are increasing pressure on crypto companies. The SEC filed lawsuits against two major cryptocurrency exchanges — Binance and Coinbase. Moreover, Hong Kong recently adopted a new set of rules for cryptocurrency companies, which allows them to get a license to work in the region.
