Chinese banks are backing Hong Kong-based crypto companies despite the ongoing crypto ban in China.
According to a Bloomberg report, banks in mainland China are rushing to offer financial services to Hong Kong-based crypto firms.
The unexpected backing comes amid an ongoing ban on cryptocurrency operations in mainland China.
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The Bank of China, Bank of Communications, and Shanghai Pudong Development Bank have reportedly reached out or started offering banking services to crypto firms in Hong Kong. The report published on March 27th indicated support by some of the sector’s leaders.
Mr. Sung Min Cho, the founder of Web3 firm "beoble," stated that the interest meant a lot “because it’s something you’d never expect at this point, even around the globe.” Julia Pang of the crypto trading platform OSL described the move by China's banks as “encouraging for both the industry and the broader ecosystem.”
Major lenders have previously avoided the crypto sector, resulting in crippled operations as firms couldn’t reliably access banking services.
Quoting an anonymous source, Bloomberg reported that a sales representative from one of the leading Chinese banks visited a crypto company in-person to make a pitch. This move comes in the wake of a policy shift expected later this year.
SCMP reported in October 2022 that the Hong Kong government could introduce a bill to regulate its crypto operations. On February 20th this year, the Hong Kong Securities and Futures Commission (SFC) launched consultations for proposed regulations on crypto activities which take effect on June 1st.
