According to foreign media reports, the Hong Kong Monetary Authority (HKMA) is pressuring major banks—including HSBC (00005), Standard Chartered (02888), and Bank of China (Hong Kong) (02388)—to accept licensed cryptocurrency exchanges as clients. In response to inquiries, an HKMA spokesperson emphasized that Hong Kong’s anti-money laundering (AML) framework is risk-based and aligns with international standards set by the Financial Action Task Force (FATF).
Key Developments
Regulatory Pressure on Banks
- The HKMA questioned banks during a recent meeting about their reluctance to onboard crypto exchanges.
- A 4 April 27 circular provided guidance to banks on serving virtual asset service providers (VASPs), urging a balanced approach between financial inclusion and AML risk management.
HKMA’s Stance
The spokesperson stated:
"Banks should strive to meet the legitimate business needs of licensed VASPs, just as they would for any regulated entity, and provide necessary banking services."
Industry Hesitation
- Banks remain cautious due to concerns about potential litigation if exchanges are linked to illegal activities (e.g., money laundering).
- Some senior bankers resist serving crypto clients, citing regulatory uncertainty in the U.S.
👉 Explore secure crypto trading platforms for compliant exchanges in Hong Kong.
FAQs
1. Why are banks hesitant to serve crypto exchanges?
Banks fear exposure to legal risks if exchanges engage in illicit activities, despite HKMA’s encouragement.
2. What did the HKMA’s April 27 circular address?
It advised banks to avoid excessive due diligence burdens and support licensed VASPs in Hong Kong.
3. How does Hong Kong’s AML framework compare globally?
It adheres to FATF standards, promoting a risk-based approach to financial services.
Related Coverage
- OneDegree: Crypto Activity Shifting from West to Asia
- SEC Moves Against Binance US
- Hong Kong’s Retail Crypto Trading Rules
Revised with HKMA spokesperson comments.
Reporters: Yao Zhuoran, Hu XueNeng
### Keywords
1. **Hong Kong Monetary Authority (HKMA)**
2. **Cryptocurrency exchanges**
3. **Banking services**
4. **Anti-money laundering (AML)**
5. **Virtual Asset Service Providers (VASPs)**
6. **Regulatory compliance**