Several Chinese state-owned banks, including Bocom and Bank of China, are reportedly showing interest in working with cryptocurrency firms in Hong Kong. The move comes after Hong Kong’s recent policy shift welcoming the battered crypto sector to its market.
Over the past few months, Chinese banks have been reaching out to crypto businesses in Hong Kong, suggesting that Beijing may be backing the city’s push to become a major digital asset center. The development is noteworthy considering that trading of cryptocurrencies has been banned on the mainland for over a year now.
The influx of crypto firms into Hong Kong has been significant following the city’s policy shift. Cryptocurrency firms are increasingly seeing potential support from China’s state-owned banks, who are courting them for business opportunities. While the banks are not directly involved in cryptocurrency trading or investments, they offer a range of services, including accounts and loans, to businesses operating in the industry.
The Chinese government has been actively supporting the development of blockchain technology, the underlying technology behind cryptocurrencies. However, it has taken a cautious stance on the trading of cryptocurrencies, citing concerns about financial stability and security risks. Despite this, China remains a major player in the global cryptocurrency market, with many Chinese investors and traders participating in cryptocurrency trading through overseas exchanges.
The move by Chinese banks to court cryptocurrency firms in Hong Kong is seen as a sign of the country’s shifting stance on the crypto sector. While it is still too early to tell what the long-term implications of this shift will be, it is clear that Chinese banks see potential business opportunities in the growing cryptocurrency market in Hong Kong.