HSBC, Standard Chartered, and Bank of China Pressured by Hong Kong to Embrace Crypto Exchanges – Next Crypto Hub?

Hong Kong’s banking regulator has reportedly exerted pressure on banks including HSBC, Standard Chartered, and Bank of China to engage with crypto clients.

During a meeting last month, the Hong Kong Monetary Authority (HKMA) questioned why the banks had not accepted crypto exchanges as clients, The [Financial Times reported, citing people familiar with the matter.

The HKMA told the banks that due diligence on such potential customers should not “create undue burden,” particularly “for those setting up an office in Hong Kong to look for the opportunities here.”

Though banks have not banned crypto clients, they may be reluctant to accept exchanges on the basis that they could be prosecuted if the exchanges are used for illicit purposes.