Regarding new virtual asset start-ups and overseas companies facing "difficulties in opening accounts" in Hong Kong, the Hong Kong Monetary Authority's Vice President Ruan Kwok-hang said that there is currently no law prohibiting Hong Kong banks from providing services to virtual asset companies, and banks should not reject account opening applications "one size fits all".

Ruan Guoheng wrote an article in "Huisi" yesterday (27th) that recently many newly established or overseas companies are interested in opening bank accounts in Hong Kong. However, at the same time, opinions reflecting that "it is difficult to open an account" are also increasing, and some even pointed out that The bank rejected the account opening application of the virtual asset company on the grounds of "anti-money laundering" and "high risk".

Ruan Guoheng said that the money laundering risk of some virtual asset businesses may be higher. It is understandable that banks should be more cautious when processing account opening applications of relevant companies. However, with the gradual implementation of the framework for regulating virtual asset activities in Hong Kong, it is expected that the provision of regulated virtual asset services Those who do so will be able to successfully open bank accounts through reasonable procedures.

He said that the Hong Kong Monetary Authority has actively discussed with banks in recent months, indicating that there are no legal or regulatory requirements prohibiting banks operating in Hong Kong from providing banking services to virtual asset-related institutions, and reminded banks that they must adhere to the "risk-based" principle to conduct customer due diligence , avoid unnecessary procedures, and account opening applications should not be rejected "one size fits all".

Ruan Guoheng emphasized:

The so-called "risk-based" means to distinguish risks and take proportionate measures, rather than dealing with "one size fits all" or "risk avoidance". Banks must effectively implement anti-money laundering measures while "treating customers fairly" and provide enterprises with access to basic banking services through transparent, reasonable and efficient procedures.​

Ruan Guoheng also announced that the Hong Kong Monetary Authority will issue a circular to banks to clarify the industry’s questions about customer due diligence, and will hold a roundtable meeting with the Securities Regulatory Commission today (28th) to meet with banks and the virtual asset industry.

Blockchain previously reported that CNHC Group, an offshore RMB stablecoin issuer that is seeking to establish a company in Hong Kong, also faces difficulties in opening a bank account.

The founder of the company, Jack Chou, pointed out that in order to open an account, he had contacted DBS Bank (Hong Kong), HSBC, Standard Chartered Bank, Bank of China (Hong Kong) and Hang Seng Bank, but there was not much progress, and the response he received was only: " Cryptocurrency remains a sensitive industry."

This article Hong Kong’s new crypto startup is “difficult to open an account”! Hong Kong Monetary Authority: There is no legal prohibition and banks should not refuse to open an account. The post appeared first on Blockclient.