The Hong Kong Monetary Authority (HKMA) is reportedly pushing HSBC, Standard Chartered and Bank of China to accept crypto exchanges as clients. According to the Financial Times, citing three people with knowledge of the matter and a letter, the HKMA has stated that “due diligence on potential customers should not ‘create undue burden’”. This comes as Hong Kong is taking steps to become a global crypto hub, with the Securities and Futures Commission (SFC) beginning to accept applications for crypto trading platform licenses on June 1.
At a meeting last month, the HKMA asked the three banks why they were not accepting crypto exchanges as clients. An HKMA spokesperson said in an email to journalists that they have “dialogues with different stakeholders from time to time on a host of matters”. The spokesperson also said that banks in Hong Kong “should endeavor to meet the legitimate business need of licensed [Virtual Asset Service Providers]… and provide the required banking services”.
Banks and payment settlers have had a tricky relationship with crypto companies globally. Last year, some payment processors cut off local exchanges in India, and recently reports have emerged that Australia’s banks have been blocking payments to crypto exchanges. While no ban on crypto clients exists in Hong Kong, banks appear to be reluctant to engage with the industry for fear of legal challenges in the event of a scam.
HSBC and Standard Chartered both told journalists that they have “regular dialogue” with regulators on different subjects. Bank of China did not immediately respond to requests from journalists for comments.