Hong Kong, the special administrative region of the Asian giant China, wants to get ahead of its rival Singapore in the crypto competition. The US and much of the world are putting pressure on the crypto sector, but incentives are evident in Eastern financial centers.
Financial regulator, Hong Kong Monetary Authority HKMA, is encouraging banks to turn to digital assets. According to media reports, HKMA gave a briefing for crypto startups to become bank customers. Giant banks like HSBC and Standard Chartered have great concerns about working with cryptocurrency exchanges.
An unidentified person told the press that although there was encouragement, senior bank executives showed resistance. However, Hong Kong authorities are making efforts to relieve banks in this regard.
Why Don’t Banks Want the Cryptocurrency Industry?
Although the crypto money industry is still in its infancy, it has come a long way in a short time. Except for companies, only the total market value of Bitcoin and altcoins is expressed in trillions. Although an industry with such a large presence whets the appetite of financiers, traditionalists are worried.
- The end of traditional finance. DeFi, which is very popular with the crypto industry, is a big competitor for banks. The ability of individuals to transact without any intermediary buyers may have frightened banks.
- Regulations and black money. Although there is no ban on crypto capital in many parts of the world yet, states are putting pressure. In addition, illegal activities carried out through digital assets carry risks for banks. Despite the size of the capital, the banks, which do not want to take the risk of sanctions, do not take kindly to deposits.
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