Hong Kong Central Bank Supports Cryptocurrencies, Warns Banks!

Hong Kong continues to take the necessary measures and make arrangements to make the city a center of the cryptocurrency industry.

The Hong Kong Central Bank said in a blog post on April 27 that it has notified banks to facilitate banking transactions with licensed and regulated virtual asset service providers.

In the blog post, it was stated that the Hong Kong economy is regaining momentum and many companies looking to explore business opportunities are eager to open accounts in Hong Kong banks.

“In the face of increasing demand, banks are accelerating their applications to open accounts, but some banks state that they will reject some applications due to anti-money laundering (AML) rules and perceive high risk.

To this end, we spoke to banks and reminded them that there is no legislation prohibiting or preventing virtual asset institutions from providing banking services. We reminded banks to avoid unnecessary processes during account opening processes.”

The blog post underlined the Hong Kong government’s goal of supporting the development of the virtual asset industry.

The Hong Kong Monetary Authority also stated that a new circular will be issued to end banks’ misapplication regarding the cryptocurrency industry.

“The government made clear in its policy statement last October its goal of promoting the sustainable and responsible development of the virtual asset sector in Hong Kong.

With relatively little experience with these new markets, front-line bank staff may be less knowledgeable in handling corporate account applications or reviewing related documents from these places.

However, banks care about the quality of the customer experience and seize opportunities from these new markets. We expect banks to continue to accelerate staff training on account opening and dedicate additional resources as needed to set up dedicated teams or hotlines to assist companies in the account opening process to capture new business opportunities.”