A number of Chinese state-owned banks’ branches in Hong Kong have started offering services to local cryptocurrency companies, Bloomberg reported on Monday, as the city welcomes a growing list of cryptocurrency and digital asset firms looking to expand or relocate to the city.

The Hong Kong entities of Bank of Communications Co., Bank of China Ltd. and Shanghai Pudong Development Bank have started to offer services to local crypto firms or made inquiries about the same, according to the Bloomberg report that cited sources familiar with the matter.

Local companies in the crypto industry have traditionally had difficulties setting up corporate bank accounts, and the moves of these state-owned lenders reflect China’s backing in trying to boost the digital asset industry in Hong Kong, according to the report.

China banned crypto transactions on the mainland in September 2021, while Hong Kong has been embracing the sector with the October release of policy documents. The city aims to regain its position as an international finance hub for digital assets and companies involved in developing the Internet through decentralized blockchains, known as Web3.

Over 80 foreign and mainland China companies have expressed their interest in establishing a Web3 operation in Hong Kong, ahead of new crypto regulations that will take effect from June, Christopher Hui, Hong Kong’s Secretary for Financial Services and the Treasury, said last week.

Hong Kong’s Financial Secretary Paul Chan said last month that the government is setting aside HK$50 million (US$6.37 million) to develop the sector, which he calls a “golden opportunity” to lead innovative development.

#china #bitcoin #Altcoin #BNB #koinmilyoner

According to Fujin News, individuals and businesses in China’s Fujian Province have processed digital yuan transactions worth nearly $22 billion, a number that reflects the rapid progress of the country’s central bank digital currency (CBDC) initiative.

It also comes during a time in which the People’s Bank of China (PBOC) has banned the use of other cryptocurrencies, such as Bitcoin and Ethereum.

The reports follow news from 2022, in which three Chinese provinces declared their intention to distribute digital yuan (e-CNY) to citizens in the form of “red packets,” with a total value of around 90 million yuan.

Fujian Province was included in the pilot zone for the CBDC last year, and it made history in October by completing China’s first digital yuan-powered land transfer transaction.

Official statistics from the province reveal that citizens have spent over $14.5 million on digital yuan transactions, and nearly $9 million worth of digital yuan tokens were distributed during promotional events by the province and its partners.

The media outlet further reported that a total of 2,572 vendors and merchants in Fujian Province now accept digital yuan payments, including toll booths on the Fuxia (Fujian-Xiamen) Expressway, which is a crucial network of highways traversing the region.

Increasingly, Chinese toll booths are enabling drivers to pay highway tolls using the country’s CBDC.

The province announced that it has established e-CNY “tax payment points” in unmanned “electronic tax bureaus” and banks across the area. It disclosed that individuals and businesses had utilized these payment options and others to pay $254 million in taxes over the last year.

Moreover, since the inaugural e-CNY-powered land transaction in October, an additional 74 properties have been exchanged using digital yuan.

Push for a digital yuan

According to Fujian, the province started providing digital yuan relief loans to local enterprises in November of last year. Additionally, it has been employing the digital currency to procure carbon sinks for environmental enhancement initiatives.

Fujian reported that it has executed 14,700 e-CNY payments for carbon sinks since the launch of the program.

Read more: Chinese cities gives away $26.6M in Digital Yuan to drive adoption

According to the Global Times, around 200 events were organized and approximately 180 million Digital Yuan (e-CNY) were distributed as subsidies and consumption coupons in various Chinese cities during the 2023 Spring Festival holidays. The total value of the e-CNY distributed was over $26.6 million.

In Hangzhou, each resident was given an e-CNY voucher worth 80 Yuan ($12). The city also allocated 4 million Yuan (approximately $590,000) to boost holiday spending.

Fujian has announced its intention to further advance the adoption of digital yuan in the future. The province plans to concentrate on utilizing the CBDC in “smart contracts and supply chain financing.”

In the meantime, the central bank is aiming to demonstrate the digital currency’s capabilities in ongoing cross-border trials in Macau and Hong Kong.

Other cryptocurrencies, however, such as Bitcoin and Ethereum, have been banned in mainland China since 2021. Following China’s ban, more than $50 billion worth of cryptocurrency left East Asian accounts to accounts outside the region, Chainalysis found.

#yuan #china #blockchain #bitcoin #koinmilyoner

Chinese Banks Eye Investments in Crypto and Web3 Startups Amid Global Crisis

In the face of a global crisis, Chinese banks are turning to cryptocurrency and web3 startups as potential investments. As traditional industries suffer from the economic downturn, many are looking to emerging technologies as a way to diversify their portfolios and take advantage of new opportunities.

This shift towards cryptocurrency and web3 investments is a significant departure from traditional Chinese investment practices, which have long favored safer, more stable assets like real estate and government bonds. However, as the global financial landscape evolves, many Chinese banks are recognizing the potential benefits of investing in these emerging markets.

China has already demonstrated a growing interest in cryptocurrencies and blockchain technology, with the country accounting for a significant portion of global bitcoin mining and trading activity. Additionally, the government has launched its own digital currency, the digital yuan, and has invested heavily in blockchain research and development.

Now, many Chinese banks are seeking to expand their involvement in these industries by investing in promising crypto and web3 startups. By doing so, they hope to stay ahead of the curve in a rapidly evolving financial landscape and capitalize on the potential of emerging technologies.

Despite the potential benefits of these investments, there are also risks involved. The cryptocurrency market is notoriously volatile, and many startups in the space are untested and unproven. Additionally, regulatory uncertainty and shifting government policies could make it difficult for investors to navigate the landscape.

Despite these challenges, however, it seems that Chinese banks are willing to take the risk in order to reap the potential rewards of cryptocurrency and web3 investments. As these industries continue to grow and evolve, it will be interesting to see how Chinese banks and other investors adapt to the changing financial landscape.

#china #crypto #trading #Web3 #Regulation

Every day that passes and every day brings us closer to an opening of China to the crypto world, the failures of American banks, the fight of the American government against crypto, push Chineses banks to launch into cryptocurrency with the gateway of HONG KONG.

China has a population of over 1.4B so no bank would want to miss this unique opportunity.

Moreover, more than 80 crypto-related companies are applying for it to be able to settle in Hong KONG, which shows enormous interest from the industry.

We are therefore going to follow with great interest the evolution of this USA-China migration.

#bitcoin #crypto2023 #Binance #china #BNB