- Hong Kong, aiming to become a crypto hub, will provide consultancy services related to crypto.
- Hong Kong believes that there is no need to impose a ban on crypto services for banks.
Hong Kong, aiming to become a new crypto hub for the world, will publish consultancy on cryptocurrency for banks.
Will Hong Kong Frame Crypto Rules?
According to the Hong Kong Monetary Authority, the institution has talked to banks and stated that there is no legal or regulatory requirement that prohibits banks from providing banking services to virtual assets (VA).
The Authority also added that banks were informed to adhere to a “risk-based approach” during customer due diligence (CDD) management;
“It is recommended that you avoid unnecessary procedures and refrain from adopting a ‘one-size-fits-all’ approach to reject applications related to crypto.”
The Hong Kong Monetary Authority mentioned that as the pandemic ends, many companies are willing to relocate and open bank accounts in the country. It is expected that there will be an increase in demand for bank account opening procedures. However, it is also expected that banking institutions will reject applications for anti-money laundering (AML) reasons.
Nevertheless, banks are advised to differentiate based on the level of risks associated with users and then apply proportional CDD rules.
Bitcoin price has recovered to the $30,000 level in the midst of the banking crisis. BTC price has increased by more than 74% in dollar terms since the beginning of the year. The consultancy of the Hong Kong Central Bank is expected to direct investors seeking regulatory clarity to enter crypto.
