According to the paper’s sources, the HKMA asked banks in May why cryptocurrency exchanges are not being accepted as clients. While banks have no ban on cryptocurrencies, they refuse to operate for fear of being prosecuted if the platforms start being used for money laundering or other illegal activities.
Standard Chartered told reporters that the company is in dialogue with regulators on any issues. The company declined to comment on the FT investigation.
On June 1, Hong Kong introduced a new licensing regime for virtual asset service providers (VASPs) that will allow local users to trade cryptocurrencies. The Hong Kong Securities and Futures Commission (SFC) has already developed additional guidelines for banks to service crypto-asset clients. By 2024, local regulators plan to work through a licensing regime for stabelcoin issuers.
However, UNCMA Chairman Eddie Yue warned cryptocurrency companies that they should not expect any indulgence from regulators, despite the region’s aspirations to become a center for digital asset development.
It was recently reported that SEC action against cryptocurrency exchange Binance could force the latter to relocate to Hong Kong.