Hong Kong’s ambition to position itself as a cryptocurrency hub has piqued the interest of state-affiliated banks in China. According to reports, Hong Kong is allegedly offering a potential gateway for regulated crypto companies to the mainland.
Despite China’s ban on crypto-related activities, these banks are exploring partnering opportunities with crypto firms in Hong Kong. Consequently, this action could signal a shift in the country’s stance towards digital assets. The move also presents a strategic opportunity for Hong Kong to solidify its position as a leading player in the global crypto ecosystem.
On the same accord, the Bank of Communications, a major state-owned bank in China, is reportedly collaborating with several registered cryptocurrency businesses in Hong Kong. Further, as per Wall Street Journal news, the Hong Kong arm of the bank is said to be in discussions with these regulated companies to open accounts. This marks a significant step towards bridging the gap between the traditional banking system and the rapidly-evolving world of digital assets.
In addition, Hong Kong’s largest virtual bank, ZA Bank, is also joining forces with the city’s cryptocurrency businesses. As a ZhongAn Online P&C Insurance subsidiary, ZA Bank is uniquely positioned to serve as a settlement bank for crypto companies operating in Hong Kong.
Together with the Bank of Communications, these banks will facilitate the depositing and withdrawing of fiat currencies. As a result, providing a much-needed link between the traditional banking system and the crypto industry.
The move is expected to create new opportunities for cryptocurrency companies to access the mainstream financial system. It is further anticipated to help legitimize digital asset use in the eyes of regulators and traditional financial institutions.
