Subsidiaries of some of China's largest banking institutions, including Bank of Communications, Bank of China and Shanghai Pudong Development Bank, have reportedly begun providing services to cryptocurrency businesses based in Hong Kong or have requested their help.

This special administrative region has recently emerged as a digital asset hub, attracting many industry players to build and develop. One example is the cryptocurrency exchange Huobi Global which is trying to get a trading license there.

Does Hong Kong's Development Have China's Support?

A recent report by Bloomberg revealed that the Hong Kong branches of Bank of Communications, Bank of China, and Shanghai Pudong Development Bank have expressed strong interest in cryptocurrency companies. domestic. Industry experts have revealed that even a sales representative from one of the above companies visited the office of a digital asset company to make an offer to provide services.

Sung Min Cho – founder of Web3-focused company Beoble – said support from Chinese banks “means a lot” to local crypto businesses. Recall how China's central bank and its government have criticized the digital assets sector in the past, banning all activities related to the sector in 2021. .

An executive at the Hong Kong branch of a major Chinese bank (who did not reveal his identity) said the aggressive stance from Beijing and the current instability in the banking sector in the US have create opportunities to expand the market.

Cooperation with banks is a burden for most cryptocurrency companies globally, but many financial institutions are still reluctant to cooperate. At the same time, some of the few that did, such as a prominent American bank and Silicon Valley Bank, ran into serious problems and were shut down by regulators earlier this month.

Hong Kong's Ambition

Despite being a special administrative region of China, Hong Kong seems to have a completely different view on digital assets.

Its administration has previously shown its intention to legalize retail cryptocurrency trading and impose a friendly regulatory framework on the sector.

This has attracted many organizations, Huobi Global being one of them. A member of the platform's Advisory Board - Justin Sun - said they had applied for a trading license with Hong Kong's supervisory authorities, calling this an "important step".

He also announced the launch of a new regional trading venue called Huobi Hong Kong, which will “fully comply with local regulations and offer a wide range of trading pairs and services for client."

The article ‘Top Chinese Banks Support Hong Kong-Based Cryptocurrency Companies: Report’ was first published on CryptoPotato.