Hong Kong crypto firms notice high interest from Chinese banks

ambcrypto.com:

Chinese state-owned banks have reportedly proven to surprise supporters of cryptocurrency companies by setting up shops in Hong Kong.

The news comes ahead of the implementation of a new licensing framework for cryptocurrency exchanges in June.

Bloomberg reported on 27 March that Chinese banks have either begun to offer banking services to cryptocurrency firms in Hong Kong or have contacted crypto firms.

The banks offering services include Shanghai Pudong Development Bank, the Bank of Communications Co., and Bank of China Ltd.

According to one account, a Chinese bank sales representative even went to the headquarters of a crypto company to promote banking services. All of this is true despite China’s ongoing prohibition of cryptocurrencies.

Though trading in cryptocurrencies has been prohibited on the Chinese mainland for well over a year, Chinese banks have been directly contacting crypto firms over the past few months.

This is one of several indications that Beijing supports the city’s efforts to become a major digital asset center.

In response to a question, Julia Pang, head of banking relations at the Hong Kong-based OSL cryptocurrency trading platform, said that her company welcomed “growing interest from Chinese banks in engaging with the regulated crypto industry.”

This achievement, she said:

“Demonstrates a maturing understanding of the crypto sector by traditional financial institutions, which is encouraging for the industry and the broader ecosystem.”

The Hong Kong Securities and Futures Commission (SFC) on 20 February presented a proposal for a regime for cryptocurrency exchanges, slated to take effect in June after the Hong Kong government raised the notion of presenting its bill to regulate