Main Takeaways

  • The CEO of Binance has shown support for Chinese state-owned banks offering banking services to crypto firms in Hong Kong.

  • The move by Chinese banks signals a potential shift in the country’s stance towards cryptocurrencies.

  • This comes amid the Mainland’s strict prohibition of crypto assets.

Changpeng Zhao, the CEO of the behemoth cryptocurrency exchange, Binance, has shown his support for a move made by Chinese state-owned banks. As crypto firms flock to Hong Kong, hoping to bounce back from a tumultuous period, they are discovering an unexpected ally in Chinese banks, according to a Straits Times report.

The cryptocurrency exchange champion Zhao has said that when one door shuts, another one opens, a statement that has garnered attention in the cryptocurrency community on Twitter.

    

When one door closes, other ones open.Chinese banks court crypto firms in Hong Kong | The Straits Times https://t.co/1FALEWKRNV

— CZ     Binance (@cz_binance)    March 27, 2023   

According to experts in the industry, institutions are stepping up to provide much-needed support, signaling a potential shift in the country’s stance towards cryptocurrencies.

Concretely, several Chinese banks, including the Bank of Communications, Bank of China, and Shanghai Pudong Development Bank, have reportedly shown interest in offering banking services to cryptocurrency firms operating in Hong Kong. While some of these banks have already started providing services to the crypto industry, others are said to have investigated the matter.

According to people familiar with the matter, sales representatives from one of the Chinese banks interested in providing banking services to crypto companies have gone as far as visiting the office of a Hong Kong-based cryptocurrency firm to pitch their services.

However, this move comes amid the mainland’s strict prohibition of involvement with cryptocurrency assets at home offices by the Beijing government.

Nevertheless, mainland Chinese financial institutions are reportedly considering launching related businesses in Hong Kong, where new measures for boosting the city’s status as a crypto hub have drawn interest from the industry.