Hong Kong's effort to become a cryptocurrency center has begun to offer various opportunities not only for cryptocurrency companies, but also for many state-linked banks in China. Despite the general ban on cryptocurrency-related activities in China, China-based banks are showing great interest in partnering with regulated cryptocurrency companies in Hong Kong and adding them to their structures.
According to a report published in the Wall Street Journal, the Hong Kong branch of Bank of Communications, one of China's major state-owned banks, is planning to cooperate with several cryptocurrency enterprises registered in the city.
Besides the Bank of Communications, China's popular internet insurance company ZhongAn Online P&C Insurance Co. ZA Bank, the largest virtual bank in Hong Kong controlled by, is planned to act as a pay-per-view bank for cryptocurrency companies. Banks are making it easier to deposit and withdraw fiat currencies.
Cryptocurrency companies are starting to get China's support
In addition to providing account services to cryptocurrency businesses, these banks are serving as pay banks that will allow token deposits to be withdrawn in Hong Kong dollars, Chinese yuan and US dollars on authorized exchanges.
At the beginning of the year, Hong Kong Financial Secretary Paul Chan made it clear that the city is trying to cooperate with more cryptocurrency firms in 2023.
As a result of the state's innovative cryptocurrency approach, about 80 cryptocurrency companies have shown interest in opening or expanding businesses in the city. The government's cryptocurrency incentives are gaining surprising allies such as Chinese banks and funds.
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in addition to adding cryptocurrency companies to its structure and opening bank accounts for regulated companies, Chinese government-backed CPIC Investment Management has launched two cryptocurrency funds. The newly launched cryptocurrency funds of CPIC, the second largest insurance company in central China, are focused on institutional investors.
China's growing interest in cryptocurrency through Hong Kong continues to surprise many in the cryptocurrency ecosystem, despite the fact that China has taken multiple strict measures against cryptocurrency-related activities in its center. #hongkongweb3 #hongkongnarrative #BTC #crypto2023 #cryptocurrency
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