Hong Kong's virtual banks are currently facing significant challenges as they only have a small market share and hold a minimal percentage of retail bank assets. Legislator Johnny Ng Kit-chong believes that virtual banks can better serve Web3 companies. One major obstacle for these banks is the difficulty in opening accounts for companies looking to venture into cryptocurrencies, NFTs, and blockchain technology. This has led some businesses to relocate to more accommodating regions, potentially hindering HK's digital innovation. Despite these challenges, there is optimism for virtual banks if they receive clear government support for Web3 development. Mox Bank, the first virtual bank in HK to offer spot Bitcoin and Ether ETFs, plans to expand into new sectors. Ng also proposed assessing the benefits of incorporating BTC into HK's financial reserves to hedge against inflation and enhance the economic framework. Read more AI-generated news on: https://app.chaingpt.org/news

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