• Chinese banks are showing interest in partnering with Hong Kong-based digital asset firms.
• These potential partnerships could benefit from Hong Kong’s more liberal regulatory environment.
• Julia Pang, head of banking relations at OSL, welcomes the partnership and sees it as an encouraging sign for the crypto industry.
Chinese Banks Showing Interest in Hong Kong Crypto Firms
According to a recent report from Bloomberg, Chinese banks are now showing interest in Hong Kong crypto firms. This has surprised the broader crypto community, given that China had once restricted digital currency transactions in the country.
China’s Regulatory Challenges
In 2021, China imposed a strict law stating that anyone associating with these digital assets is at risk of going to jail. However, digital currency transactions in Hong Kong have risen despite China’s regulatory challenges. Several companies are even leveraging the city’s position due to its proximity to mainland China and as a financial hub.
The report revealed the major financial institutions in the category, which include Bank of China Ltd., Bank of Communication Co., and Shanghai Pudong Development Bank, are either offering their services to digital currency firms or showing interest in providing financial services to them. It also cited that some of the banks’ representatives have already taken a step further to visit the main office of a crypto firm.
Julia Pang’s Statement
Julia Pang, head of banking relations at OSL, a Hong Kong-based digital asset trading platform, stated that her company welcomes interest and partnership with Chinese banks. She added that the latest development encourages a good level of understanding between digital asset companies and traditional financial institutions.
Impact on Crypto Market
As the crypto market continues to evolve, it’ll be interesting to see how the partnership between Hong Kong-based digital asset firms and Chinese banks will grow, including its impact on the broader industry.