TechFlow news, Hong Kong's banking regulator is pressuring banks such as HSBC and Standard Chartered to accept cryptocurrency exchanges as clients in an effort to promote the digital asset industry.
Insiders revealed that during a meeting last month, the Hong Kong Monetary Authority (HKMA) questioned British and Chinese banks about their refusal to accept crypto exchanges as customers.
In a letter sent to banks on April 27, HKMA stated that conducting due diligence on potential clients should not "create unnecessary burdens," especially for companies establishing offices in Hong Kong and seeking business opportunities.
Banks are not prohibited from serving crypto clients, but they remain reluctant to onboard exchanges due to concerns over potential legal liability if these platforms are used for money laundering or other illicit activities.
According to sources, HKMA is encouraging banks not to be afraid. Standard Chartered said it has "regular dialogue with regulators on various topics." HSBC said it is "closely following policy developments and the emerging industry in Hong Kong." Bank of China declined to comment.
