• The Hong Kong Monetary Authority (HKMA) is reportedly pushing global banks operating in the region to accept crypto exchange platforms as clients.
• The HKMA sent a letter to major lenders such as HSBC, Standard Chartered and the Bank of China asking them not to “create an undue burden for those setting up an office in Hong Kong.”
• This comes at a time when US regulators are cracking down on crypto exchanges with the SEC filing lawsuits against Binance and Coinbase for allegedly violating securities laws.
Hong Kong Regulator Pressures Global Banks To Onboard Crypto Exchanges
The Hong Kong Monetary Authority (HKMA), the body that regulates banks in the region, has asked major financial institutions to “try and meet the business needs of licensed crypto exchanges” according to a new report by Reuters. Blue-chip institutions HKMA had asked to onboard crypto exchanges include UK-based lenders HSBC and Standard Chartered, and the Bank of China, a Chinese state-owned bank. In addition, last month, the HKMA sent a letter to these banks asking why they were not accepting crypto exchange platforms as clients and instructing them not to “create an undue burden for those setting up an office in Hong Kong.”
US Regulators Crack Down On Crypto Exchanges
The news from Hong Kong comes at a time when US regulators are cracking down on crypto exchanges with the Securities and Exchange Commission (SEC) filing lawsuits against Binance and Coinbase for allegedly violating securities laws. The SEC deemed numerous crypto assets as securities, including Binance’s native token BNB, thus accusing the two biggest crypto exchanges by volume globally of selling unregistered securities.
Hong Kong Establishes Itself As Global Hub For Digital Assets
Hong Kong’s efforts push global banks towards accepting crypto exchange platforms as clients is part of their larger plan to establish itself as a global hub for digital assets. This move could potentially attract more investors into cryptocurrency markets and provide more liquidity which would benefit both traders and investors alike.
Impact Of US Regulatory Crackdown On Crypto Markets
The US regulatory crackdown on cryptos could have far reaching implications on how investors view cryptocurrencies going forward. Investors may become wary of investing in digital assets due to fear of potential legal action taken by regulators leading them away from cryptocurrencies altogether or towards more regulated investment vehicles like Security Token Offerings (STOs).
Conclusion
In conclusion, while it remains unclear how successful Hong Kong’s efforts will be in establishing itself as a global hub for digital assets, it does signal its commitment toward building its ecosystem for blockchain technology development. Meanwhile, US regulatory actions could have long term impacts on investor sentiment towards cryptocurrencies depending on what outcomes arise from this current situation with Binance and Coinbase facing accusations of alleged violations of securities laws.