Hong Kong regulators are planning a second meeting in less than two months to push banks to offer services to virtual-asset firms as the city seeks to become an international crypto hub.
The top financial regulators have called a meeting on Monday to bring together banks, crypto platforms and other industry participants, according to people familiar with the matter who asked not to be named discussing a private matter.
The discussion will focus on how to address persistent challenges crypto firms face in opening bank accounts, said the people. It will be the second meeting since late April to push for more participation by banks, underscoring the struggle crypto firms have in gaining banking services. The meeting next week will cater to those not present at the inaugural dialog.
A spokesperson for the Hong Kong Monetary Authority said the de facto central bank “has maintained close dialogue with the banking industry and relevant stakeholders on various topics from time to time,” while declining to comment on the planned meeting. A spokesperson for the Securities and Futures Commission, which regulates crypto exchanges, declined to comment.
Hong Kong this month rolled out a new licensing regime to cover crypto exchanges, but banking access, a talent shortage and the crisis roiling the industry is hampering the city’s ambitions.
Crypto firms have seen difficulties in gaining banking services due to stringent know-your-customer and anti-money laundering rules. The crypto industry is under fire globally from regulators including the US Securities and Exchange Commission, amping up the pressure on lenders while stoking greater caution than is customary.
After a $1.5 trillion digital asset rout in 2022, with several high-profile firms going bust, the US last week started lawsuits against Binance Holdings Ltd. and Coinbase Global Inc. Turmoil this week also gripped the industry in South Korea, where two crypto platforms halted withdrawals in the space of 24 hours.
Hong Kong market regulators in late April issued a circular to urge banks to support regulated virtual asset businesses with their “legitimate need for bank accounts.”
About 20 banks and a similar number of crypto-related firms attended the roundtable addressing banking needs at that time, according to the HKMA.