First Mover Asia: China’s State-Owned Banks Are Soliciting Hong Kong Crypto Business, but Opening an Account Is Hard

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Good morning Asia. 1. Bitcoin is opening the trading day in the red after cftc sued Binance. 2. Banking for crypto startups in Hong Kong is still hard, despite mainland China banks soliciting crypto customers. thesamreynolds writes

, and it’d be unthinkable a few years ago that they would be actively soliciting crypto business considering Beijing’s hardline stance on the issue and the general hesitation of large banks to engage with crypto.with analysts saying

the crypto industry will have a “difficult time finding traditional banks that will work with it” post their demise. These two banks made – and lost – their fortune with crypto: At the turn of the decade, they were both small, unknown banks before embracing crypto;$2.12 billion in assets in December 2019 and peaked at $16 billion in December 2021.

Although both Silvergate and Signature grew significantly throughout crypto’s boom years and institutionalization, their relatively small size means that they fell faster than they would have if they were larger like some of their peers. But not everyone thinks this is the first chapter of something new, considering the tough onboarding process.

"The city’s digital assets regulation is overall friendly and encourages banks to work with crypto companies, however, banks still currently have stringent requirements in place which makes it difficult for crypto businesses to expand and grow,” Adrian Wang, CEO of Metalpha Technology, a Hong Kong-based digital assets wealth management company, said to CoinDesk. “We have yet to see major progress in the banking sector to embrace crypto. Hopefully, that will change soon.

 

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CFTC thesamreynolds Get in there Chinese banks hope you enjoy the 10g washout

CFTC thesamreynolds Why does crypto need a bank?

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