Two major banks are not supporting the crypto sector in Hong Kong
Hong kong-based giant global banks said that they will not give favor to those companies which are linked with crypto businesses.
Hong Kong is a crypto-friendly jurisdiction. Under the current laws, crypto trading is fully legal, and also all the crypto companies are open to operating their crypto business under the clear rules & regulations of the country. In the present time, huge numbers of crypto companies are in the queue to get full Crypto licences to operate a crypto business in this special administrative region of China.
On 17 July 2023, the Wall Street Journal (WSJ) reported that at least two top Hong Kong-based global banks decided not to provide banking services to crypto companies.
These banks are not feeling safe helping crypto businesses. According to these banks, cryptocurrencies are a highly volatile market as well as a financial instrument for bad actors.
So these banks believe that cryptocurrencies can be used for money laundering and it will not be easy to prohibit such activities easily under the existing AML measures.
Against such decisions, the Hong Kong government agencies ordered banks not to terminate or refuse banking services for the crypto companies, because of their crypto business.
Following the WSJ report on this matter, people are giving different types of responses. Some crypto Twitter users said that all such banks are in fear that they will lose their financial position, while people said that the Hong Kong government blindly brought laws for the crypto sector but failed to cover all the crypto-supportive parts to bring under crypto regulation.
The crypto banking ban is not a new thing. In the past, the majority of the Central banks showed their strict action against cryptocurrency businesses via crypto banking ban measures. Between Q4 2022 to Q2 2023, the majority of the crypto startups alleged that they are failing to get bank accounts in the US jurisdiction, despite it being legal for the crypto companies to get banking services.
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