Despite a country-wide ban on cryptocurrency activities in China, state-affiliated banks are establishing partnerships and opening accounts for regulated crypto firms in Hong Kong. Bank of Communications’ Hong Kong branch and ZA Bank, the largest virtual bank in Hong Kong controlled by the Chinese internet insurer ZhongAn Online P&C Insurance, will offer settlement and account services to crypto businesses. These banks will allow authorized exchanges to withdraw token deposits in Hong Kong dollars, Chinese yuan, and U.S. dollars.
Hong Kong’s crypto-friendly government has attracted around 80 cryptocurrency firms to expand their businesses in the city, along with Chinese banks and funds. China’s increasing participation in the crypto industry via Hong Kong has surprised the ecosystem given the country’s previous efforts to discourage crypto-related activities. Despite China’s ban, the adoption of crypto is still progressing through Hong Kong’s forward-thinking approach towards digital assets.