According to a report, the Bank of China Ltd., the Shanghai Pudong Development Bank, and the Bank of Communications Co. have initiated contact with or begun providing banking services to cryptocurrency companies in Hong Kong. Also, a Chinese bank sales representative reportedly visited the main office of a crypto firm to promote banking services.
These actions are significant because the crypto industry has struggled to obtain routine banking services, such as setting up accounts for paying employees and suppliers, as highlighted in the report, because of the prevailing crypto ban in China.
Moreover, this move comes at a favourable time when these banks are stepping in to fill the void left by the collapses of US technology-focused banks such as Silicon Valley Bank, Silvergate Capital Corp., and Signature Bank.
Sung Min Cho, the CEO and founder of Beoble, remarked that the recent drive by Chinese banks holds significant meaning for his company as it is an unexpected development globally.
Dominic Law, the Neopets Metaverse’s Chief Metaverse Officer, expressed his view that it would be excellent if local banks could initiate trial programs to support crypto firms and other professional service providers who comprehend the native landscape. Law emphasized that such initiatives would foster a more accommodating business environment, making supporting more startups in the field’s growth easier.
According to a report last month, the Chinese government subtly expressed its support for Hong Kong’s ambition to become a cryptocurrency hub. The report noted that Chinese officials did not voice any criticism of the plan, and their interactions with Hong Kong officials on the matter have been amicable thus far.
Some local crypto business operators speculate that Beijing may even consider using Hong Kong as a testing ground for cryptocurrencies.
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