Overview
• Binance CEO Changpeng ‘CZ’ Zhao believes that more funds will move to Hong Kong due to banks in the region supporting crypto.
• Hong Kong virtual bank ZA Bank said it would start providing crypto and fiat currency transfers and account services for virtual asset service providers.
• The city has also been making efforts to become a crypto hub in Asia, with recent measures such as legalizing crypto trading, opening a consultation service to help regulate crypto exchanges, and sparing $50 million to accelerate Web3 development in Hong Kong.
Binance: Funds Moving To Hong Kong
Following recent banking troubles in the U.S., several crypto firms like Binance.US are looking for new banking partners. CEO Changpeng ‘CZ’ Zhao of Binance believes that Hong Kong would be a choice destination for many of these firms due its supportive stance towards cryptocurrencies.
ZA Bank Offers Crypto Exchanges A Lifeline
Hong Kong virtual bank ZA Bank said it would start providing crypto and fiat currency transfers and account services for virtual asset service providers. It will offer token-to-fiat currency conversions for licensed exchanges – allowing customers to withdraw US Dollars, Yuan, and Hong Kong dollars – meaning the bank will act as a settlement partner for exchanges. Currently only exchanges licensed in Hong Kong – OSL and HashKey – can use this service but they expect more exchanges to join as they obtain licenses from the regulator.
Hong Kong Pushes To Become Crypto Hub
Hong Kong is positioning itself as a main cryptocurrency hub in Asia and has been taking steps towards this goal recently. This includes giving financial institutions permission to do business with the crypto sector through a joint circular from January issued by both the Securities and Futures Commission (SFC) and the Monetary Authority (HKMA). Additionally, it legalized cryptocurrency trading, opened up consultation services to help regulate cryptocurrency exchanges, along with allocating $50 million towards Web3 development within the area of Hong Kong itself.
Conclusion
As banks continue offering support for cryptocurrencies within their region, many investors are likely going to shift their focus over there – with one potential destination being Hong Kong due its friendly attitude towards digital currencies. As they take steps forward into becoming an established cryptocurrency hub within Asia, we can expect more companies coming over or expanding already existing operations there so they can take advantage of what this region has on offer when it comes to digital assets management and development opportunities..