Cryptocurrency companies established in Hong Kong have reportedly found some unexpected allies in the region Chinese state-owned banks ahead of the introduction of a new cryptocurrency exchange licensing regime in June.
According to a March 27 Bloomberg report, Chinese banks including Shanghai Pudong Development Bank, Bank of Communications, and Bank of China have begun offering banking services to or consulting with crypto companies in Hong Kong, according to “people familiar with the matter.” .
A Bank of China sales representative even visited the headquarters of a cryptocurrency company to pitch banking services, one source said. This is all despite the ongoing cryptocurrency ban in China. Asked for comment, Julia Pang, head of bank relations at Hong Kong-based cryptocurrency trading platform OSL, told Cointelegraph that her firm welcomes “increasing interest from Chinese banks in participating in the regulated cryptocurrency industry.”
“This development is encouraging for the industry and the wider ecosystem, as it demonstrates the maturing understanding of the crypto industry among traditional financial institutions,” she said. A spokesman for the company said they were unable to comment at this time on whether any state-owned Chinese banks had approached the company.
Last October, the Hong Kong government floated the idea of introducing its own cryptocurrency regulation bill, and Hong Kong’s Securities and Futures Commission released a proposal for a cryptocurrency trading regime on Feb. 20, which will come into effect in June. According to a Feb. 20 report, representatives from the China Liaison Office are understood to have frequented the crypto rally in Hong Kong.
