The Chinese state-owned bank is reportedly looking to provide banking services to crypto companies in Hong Kong. The sector has seen an increase in activity after the loosening of crypto market regulations.
Despite a crypto ban in China, state-owned crypto firms in the country seem to be helping Hong Kong. The sector has recently changed its stance on crypto, opening up new possibilities for the market and causing a boom in business.
Bloomberg reports that these state-owned banks that have been approaching crypto firms in Hong Kong include Bank of Communications, Bank of China and Shanghai Pudong Development Bank. Of course, it is only the Hong Kong branch of these banks that is doing this.
These banks are reportedly providing banking services to these firms. Bloomberg cites sources with knowledge of the matter. A source even said that representatives of a bank visited the office of one of these companies to detail the services.
The crypto environment in Hong Kong is increasing its presence in the space. Banks are willing to involve themselves, despite mainland China’s fairly strict crypto laws.
Binance is accused of advising crypto ban bypass
On the subject of the crypto ban in Mainland China, Binance staff and support volunteers were reportedly informing people how to bypass the ban. CNBC reported the news, saying that Binance’s official Chinese-language chat room indicated that a bypass was taking place.
CNBC translated the messages from Discord and Telegram to say that some of the accounts have been identified as Binance employees and volunteers. According to CNBC, some of the tips they’ve given include offering forged bank documents or false addresses.
companies coming to hong kong
With the new regulations adjusting the market, Hong Kong is set to become a well-known crypto hub. Hong Kong’s Financial Services and Treasury Secretary revealed a few days ago that more than 80 crypto firms are looking to set up shop in the region. The companies come from all over the world, and the official said that the crypto market and Web3 were important.
However, some control is necessary, as Hong Kong is also a hotbed of crypto scams. Last year, losses from crypto scams in the region doubled to $217 million, according to the South China Morning Post.
BeInCrypto has reached out to the company or the person involved in the story for an official statement regarding the recent development, but has yet to hear back.