On running to the crypto-friendly city of Hong Kong to find succor for their businesses, digital asset service providers discovered that some Chinese-owned banks were ready to provide them with potential backing.
Since Hong Kong began to make efforts to become the crypto hub amongst its neighboring cities, there has been a steady inflow of crypto businesses from mainland China due to the ban in the capital city of Beijing.
Yu Jianing, a man known to arrange junkets for startups in the mainland who wish to travel to Hong Kong, claimed that he has signed up more than 500 entities that are seeking greener pastures in relation to crypto and Web 3.0. “I have had many people reach out to me about establishing startups in Hong Kong, tax incentives, talent,” Yu explained.
Most of these crypto businesses planned to engage the services of licensed crypto exchanges in Hong Kong like HashKey Group which received approval for over-the-counter (OTC) services last month, and OSL Digital Securities Limited (OSL). Markedly, only professional investors with up to $1 million in assets can trade crypto on these licensed exchanges.
Chinese Banks Pitch to Crypto Businesses
Currently, Chinese banks based in Hong Kong are now trying to extend a hand of fellowship to these crypto businesses to offer them banking services.
The Bank of Communications Co., the Bank of China Ltd, and the Shanghai Pudong Development Bank in Hong Kong have started reaching out to crypto firms or have begun offering their services to these firms, according to certain anonymous sources.
Furthermore, one of the sources precisely asserted that a Chinese bank salesperson was recently pitching his company’s banking services at the head office of a crypto firm. In the meantime, none of the aforementioned banks has made any comments about this information so far.
Sung Min Cho, the Chief Executive Officer (CEO) and founder of Beoble said that the move of these Chinese firms “means a lot to us because it’s something you’d never expect at this point, even around the globe,” he added that “A cryptocurrency account at a tradfi bank is something groundbreaking.”