Although the local government wants to make it a territory but crypto companies in Hong Kong are having a difficult time getting corporate bank accounts.
The director of commercial and customer services at HSBC-owned Hang Seng Bank has said that while licensed crypto companies can open a bank account, they will only get a “simple” one, as per the report from the Hong Kong Economic Journal.
Hang Seng Bank, the largest local bank in Hong Kong, stated that cryptocurrency companies can only open simple accounts after obtaining the approval-in-principle (AIP) license from the Hong Kong Securities Regulatory Commission.
Crypto companies applying to operate in Hong Kong are struggling to open bank accounts due to limited staffing at Securities and Futures Commission and unwillingness from banks, even though there’s no ban on them offering services to crypto firms.
There is a growing concern about the limitations placed on licensed crypto companies in Hong Kong. These restrictions, such as having ‘simple’ accounts at Hang Seng Bank, could potentially hinder the progress of cryptocurrencies in the region.
The Hong Kong Monetary Authority (HKMA), which serves as the region’s central bank and regulator, has reportedly put pressure on major banks, including HSBC and Standard Chartered, to accept crypto exchanges as clients.
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