Hong Kong Central Bank

Hong Kong Central Bank Urges Banks to Provide Services to Cryptocurrency Firms

On April 27, Hong Kong Central Bank, “the Hong Kong Monetary Authority” (HKMA), issued a circular calling on banks to provide services to cryptocurrency firms. The HKMA, which serves as the region’s central banking institution and regulator, has required authorized institutions to adopt a risk-based approach in Anti-Money Laundering efforts.

The regulator has specifically required institutions to support virtual asset service providers (VASPs) licensed and regulated by the Securities and Futures Commission in obtaining banking services in Hong Kong. The HKMA stressed the importance of proportionate customer due diligence measures based on the level of risk to avoid undue burden on customers.

As Hong Kong prepares to adopt new crypto regulations on June 1, 2023, the HKMA encouraged lenders to train staff and form dedicated divisions to support the crypto industry while avoiding a wholesale de-risking approach. The new regulations will officially allow retail investors to buy and sell cryptocurrencies like Bitcoin (BTC) and Ether (ETH).

The move comes amid Hong Kong’s active efforts to attract crypto companies, while major global jurisdictions such as the United States have partially impeded the industry due to the lack of clear regulations. As per a report by Andreessen Horowitz, the share of global crypto developers based in the U.S. declined by 26% from 2018 to 2022.

The HKMA’s circular is a welcome move for the cryptocurrency industry, as it promotes a risk-based approach in Anti-Money Laundering efforts and encourages banks to provide services to VASPs. It remains to be seen how banks will respond to the HKMA’s call and whether other jurisdictions will follow suit in supporting the crypto industry.

Facebook
Twitter
Pinterest
LinkedIn
Telegram
Reddit
Email
WhatsApp
On Key

Related Posts

Heroes of Mavia

Heroes of Mavia: A New Dawn in Blockchain Gaming

Diving into Heroes of Mavia, my research uncovered a captivating blend of strategy and blockchain innovation. This game isn’t just about battles; it’s a new frontier in gaming that promises both excitement and a sense of ownership. Join me as we uncover what sets Heroes of Mavia apart in the gaming world. Key Takeaways Table

what is beoble.io

What is Beoble.io?: How Secure Wallet-to-Wallet Messaging Works

In my research on “what is beoble.io,” I discovered it’s revolutionizing web3 communication. It bridges users and Dapps through innovative, wallet-based messaging. This platform promises a more connected, secure digital world, making me excited to dive deeper. Key Takeaways Table of Contents1 The Genesis of Beoble.io1.1 Core Features of Beoble.io1.2 Beoble.io in the Web3 Ecosystem2

Beoble Crypto Airdrop

Beoble Crypto Airdrop: The Ultimate Guide

In the rapidly evolving world of cryptocurrency, airdrops have emerged as a pivotal strategy for projects seeking to enhance their visibility and grow their community. Beoble, a prominent figure in the crypto space, has recently launched an airdrop that has caught the attention of enthusiasts and investors alike. This guide delves into the intricacies of

Leave a Reply

Shopping Cart
Scroll to Top