Report Hong Kong pressures major banks to work with crypto exchanges.

The Hong Kong Monetary Authority (HKMA) is urging major banks like HSBC, Standard Chartered, and Bank of China to accept cryptocurrency exchanges as clients. This is part of Hong Kong’s efforts to establish itself as a global hub for cryptocurrency. HKMA recently sent a letter to the banks, stating that due diligence on potential customers should not create undue burden, especially for those looking to set up an office in Hong Kong. The Securities and Futures Commission in Hong Kong has also begun accepting applications for crypto trading platform licenses. However, banks are still hesitant to engage with the industry for fear of legal challenges in the event of a scam. The HKMA spokesperson said that banks in Hong Kong should provide the required banking services to licensed virtual asset service providers. HSBC and Standard Chartered have confirmed that they have active dialogues with virtual asset players, while Bank of China has not yet responded to requests for comments.