HK Banking Sector Gets On-Board with Crypto, Funds to Flow Into Stablecoins: CZ
- Binance CEO Changpeng Zhao comments that HK banks’ support for crypto would draw more funds into the market.
- The biggest virtual bank in Hong Kong is broadening its offerings to include crypto transfers.
- Previously, the HK government allocated $50 million to speed up Web3 development.
A current tweet by the CEO of Binance, Changpeng Zhao (CZ), implies that Hong Kong (HK) banks are starting to accept cryptocurrencies. Zhao accentuated the importance of the HK banks’ move, noting that it would bring more money into the crypto market, particularly into stablecoins like Tether (USDT).
HK banks start to support crypto. We will see more funds moving there. USDT alone is $80b market cap. More stable coins to come…
— CZ Binance (@cz_binance) April 12, 2023
However, some crypto fans are worried about the recent move towards crypto-friendliness in Hong Kong. They think it could be a ploy by the Chinese government to attract crypto businesses, only to later crack down on them with full force.
Nevertheless, a HK-based media house reported on Tuesday that ZA Bank, the largest virtual bank in Hong Kong, is expanding its services to include transfers of crypto and fiat currencies and account services for the digital asset sector.
According to CEO Ronald Iu, ZA will offer token-to-fiat conversions over certified exchanges while acting as a settlement partner for clients to allow withdrawals in Hong Kong, Chinese, and US currencies. ZA bank already offers this service to HashKey and OSL, the only two currently licensed crypto exchanges in Hong Kong.
In February, Hong Kong’s Securities and Futures Commission (SFC) initiated a consultation process for Virtual Asset Service Providers (VASPs) seeking a license to provide trading services. The regulator collected input on whether licensed platforms should serve retail investors and under what investor protection measures.
In the same month, the Hong Kong government showed an intense interest in Web3, looking to seize the opportunity to lead innovation and development. The government allotted $50 million in its 2023/2024 fiscal year budget to speed up Web3 ecosystem development.
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