A Hong Kong regulatory body reportedly admits pushing global banks operating in its jurisdiction to accept crypto exchange platforms as clients.
According to a new report from Reuters, the Hong Kong Monetary Authority (HKMA), the body that regulates banks in the region, says it has asked major financial institutions to “try to meet the business needs of licensed crypto exchanges.”
Blue-chip institutions that HKMA had asked to onboard crypto exchanges include UK-based lenders HSBC and Standard Chartered, and the Bank of China, a Chinese state-owned bank.
Last month, the HKMA asked the trio of banks why they were not accepting crypto exchange platforms as clients. In addition, the HKMA said in a letter to banks on April 27 that the lenders “should not create an unnecessary burden on those setting up an office in Hong Kong,” according to the report.
Hong Kong’s efforts to establish itself as a global hub for digital assets come as the US cracks down on crypto exchange platforms.
Last week, the US Securities and Exchange Commission (SEC) filed lawsuits against Binance and Coinbase, the world’s two largest crypto exchanges by volume, alleging violations of securities laws.
The SEC considered numerous crypto assets to be securities, including Binance’s native token BNB, and accused the crypto exchanges of selling unregistered securities.
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Featured image: Shutterstock/tunnelmotions/Vladimir Sazonov
