Chinese State-owned banks are reportedly looking to offer banking services to crypto companies in Hong Kong. The region has seen a surge in activity after rules for the crypto market were loosened.
Despite a crypto ban in China, state-owned in the country appear to be helping crypto firms help in Hong Kong. The region has recently changed its tack on crypto, opening up new possibilities for the market and spurring a surge in business.
Bloomberg reports that these state-owned banks have been contacting crypto firms in Hong Kong, including the Bank of Communications, the Bank of China, and the Shanghai Pudong Development Bank. Of course, it is just the Hong Kong branch of these banks that is doing so.
These banks are reportedly offering banking services to these firms. Bloomberg cites sources with knowledge of the matter. One source even said that representatives of a bank visited the office of one of these companies to detail the services.
The crypto environment in Hong Kong is ramping up its presence in the space. Banks are keen on involving themselves, despite mainland China’s crypto laws being quite strict.
Binance Accused of Advising Crypto Ban Bypass
On the subject of the crypto ban in Mainland China, Binance employees and support volunteers were reportedly informing people on how to bypass the ban. CNBC reported the news, saying that the official Chinese-language chatrooms of Binance indicate that this bypassing is taking place.
CNBC translated messages from Discord and Telegram, saying that some accounts were identified as Binance employees and volunteers. Some suggestions made by them include forging bank documents or offering false addresses, according to CNBC.
Companies Flocking to Hong Kong
Hong Kong has made its intention to become a well-known crypto hub, with new rules accommodating the market. Hong Kong’s Secretary for Financial Services and Treasury revealed a few days ago that more than 80 crypto firms wished to set up shop in the region. The companies come from across the world, and the official said that the crypto market and web3 were important.
However, some control is necessary, as Hong Kong is also a hub for crypto scams. Last year, the losses resulting from crypto scams in the region doubled to $217 million, according to the South China Morning Post.
BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.