Hong Kong’s Virtual Banks Eye Web3 Expansion Despite Regulatory challenges
Hong Kong's virtual banks, holding just 0.3% of retail banking assets, are ambitiously exploring the Web3 space despite facing significant regulatory challenges. Legislator Johnny Ng Kit-chong is pushing for greater support for Web3 companies, highlighting the potential benefits for Hong Kong’s financial ecosystem.
Crypto-related businesses face hurdles in opening accounts due to stringent regulations, leading some firms to consider relocating. However, Ng remains optimistic, advocating for a clear government strategy to foster Web3 growth.
Mox Bank is already making strides, launching crypto ETFs and planning further digital investment opportunities. Additionally, Ng has floated the idea of incorporating Bitcoin into Hong Kong’s financial reserves as a hedge against inflation.As Hong Kong’s virtual banks navigate these regulatory waters, their efforts to expand into Web3 could signal a new era of digital finance for the city.