Chinese state-owned banks are reportedly supporting crypto firms setting up in Hong Kong before a new licensing regime for crypto exchanges begins in June.
Bloomberg reported on March 27 that according to the people familiar with the matter, these banks, including the Bank of Communications Co., Bank of China Ltd., and Shanghai Pudong Development Bank, have either started providing banking services to crypto firms or have made inquiries with them.
According to an undisclosed source, a representative from a Chinese bank visited the head office of a crypto firm to offer banking services, even though China has banned crypto.
When asked for comment, Julia Pang, who is the head of banking relations at the Hong Kong-based crypto trading platform OSL, stated that her company appreciates the increasing interest shown by Chinese banks in engaging with the regulated crypto industry.
Pang added that this development is positive for both the industry and the ecosystem, as it shows that traditional financial institutions are gaining a better understanding of the crypto sector.
A representative for the company stated that they are unable to provide a comment at the moment regarding whether or not any state-owned Chinese banks have contacted their firm.
In October of last year, the Hong Kong government suggested implementing its own legislation to regulate crypto. On February 20, the Hong Kong Securities and Futures Commission released a proposal for a regulatory framework for crypto exchanges that will come into effect in June.
Additionally, it has been reported by Bloomberg that representatives from the China Liaison Office have been attending crypto events in Hong Kong.
The writer is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash