Hong Kong is a city and special administrative region in China which enjoy some autonomy on its own. It is a city with a population of 7.4 million residents of various nationalities.
Just recently, Hong Kong’s central bank reportedly reiterates on its call for major banks, including HSBC, Standard Chartered and Bank of China to accept crypto firms as clients. Despite the call for this, the banks are hesitant in doing so.
The Hong Kong Monetary Authority (HKMA) encouraged the banks not to be afraid during a meeting after which a circular was released to banking institutions last month.
Below is the HKMA circular to banking institutions in Hong Kong
The circular recommended and encouraged banking institutions to keep track on new market developments and to take a more daring approach to emerging markets like the cryptocurrency market. The institutions were particularly obliged by Hong Kong's central bank to assist cryptocurrency companies, which it refers to as "virtual asset service providers," in acquiring access to banking services.
This new approval by the Hong Kong central bank will make trading crypto a more friendly traded asset in that region that house many populations and also in the adoption of it because of the various nationalities present in that region of China.
Despite the circular and assurance to the traditional banks there, they are still hesitant in accepting crypto firms. What could be their reason for being reluctant in accepting crypto firms as clients?
Source:
https://twitter.com/watcherguru/status/1669373334776078336?s=46&t=AFO-ngiNXBXd6CFRPg8kKg
https://cointelegraph.com/news/hong-kong-government-pressures-bank-giants-accept-crypto-clients
https://watcher.guru/news/hong-kong-urges-hsbc-standard-chartered-to-support-crypto-exchanges