Hong Kong Calls on Banks to Work with Crypto
Main page News, Banking, China, Cryptocurrency Exchanges, Hong Kong

The Hong Kong Monetary Authority (HKMA) has issued a circular Friday, saying the local financial institutions should support crypto exchanges — described as virtual asset service providers (VASPs) — licensed and regulated by the Securities and Futures Commission (SFC).

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In the document, the HKMA emphasized the banks are not obliged to conduct enhanced customer due diligence if it is an SFC-licensed crypto exchange.

"The information collected by authorized institutions should be reasonable taking into account the circumstances of VASPs, particularly their status as a legal entity under the supervision of SFC."

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However, authorized institutions should provide "practical guidance" to ensure a clear understanding of the requirements, the watchdog noted.

Earlier in April, the largest digital bank in Hong Kong, ZA Bank, started offering banking services to all licensed crypto companies in the region.

ZA Bank Chief Executive, Ronald Iu, said the lender is ready to offer services like crypto-to-fiat currency conversions over licensed exchanges. The bank also plans to act as a settlement provider to allow withdrawals in Hong Kong, China and US currencies, Iu explained.

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