Johnny Ng, a Hong Kong lawmaker, has called on the government and banks to ease restrictions on banking services for crypto and Web3 firms, highlighting the ongoing challenges these companies face in opening local bank accounts.
In a post on X today August 9, Ng, a member of the Hong Kong Legislative Council, emphasised that these difficulties are
“hindering their ability to conduct business effectively.”
Ng suggested that virtual banks should expand their services to complement traditional banks and proposed that Hong Kong should enhance its virtual banks to handle virtual assets, in line with the government’s Web3 development objectives.
Ng’s remarks after the findings of a recent survey which collected feedback from over 120 crypto and Web3 firms entering Hong Kong since 2022 was announced the Hong Kong Legislative Council. According to the local newspaper Sing Tao Daily, the survey revealed that approximately 95% of these companies had attempted to open local bank accounts, with 70% of respondents indicating that banks required their shareholders or directors to make multiple visits to Hong Kong. Only 20% of the companies managed to open accounts within two to five months, while 54% reported needing at least six months or more to complete the process.
Ng’s concerns also echo those of fellow lawmaker Duncan Chiu, who previously criticized the “excessively stringent” regulations imposed on crypto exchanges seeking licenses. Chiu argued that these rules have deterred major global exchanges from entering the Hong Kong market.
Meanwhile, Hong Kong’s financial regulators are moving forward with plans to regulate the stablecoin industry. They have proposed a licensing regime for stablecoin issuers following a consultation that concluded in February, where most respondents supported regulating fiat-referenced stablecoin (FRS) issuers. This initiative is part of Hong Kong’s broader legislative effort to transform and regulate its digital asset sector, as stated in a joint announcement from the Hong Kong Monetary Authority (HKMA), Treasury Bureau, and Financial Services.
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