Hong Kong has been one of the world’s most crypto-friendly regions, and so far, it seems the region is continuing to nurture this friendly relationship with the sector. Recently, Hong Kong Legislative Council Member Johnny Ng announced compressed To provide greater banking access for crypto and Web3 companies in the region.
This initiative aims to remove any existing barriers between these crypto-related companies and local banking services in the region, which seem essential to their operation, given their connection to financial services.
Banks’ struggle for cryptocurrency companies
It is worth noting that the call to ease banking restrictions came directly from Johnny Ng, who highlighted the ongoing challenges facing crypto and Web3 companies.
Despite Hong Kong’s ongoing efforts to position itself as a global hub for cryptocurrencies, these companies often face strict banking procedures that limit their ability to conduct smooth transactions and grow their businesses.
Ng stressed that these difficulties constitute major barriers, and suggested that virtual banks work to expand their services to support the digital assets sector.
It is worth noting that if banks in the region were to yield to Ng’s pressure, this would not only be in line with Hong Kong’s overall ambitions for Web 3.0 development, but it could also support a more conducive environment for innovation and growth in Hong Kong’s digital economy.
In further confirmation of the urgency of this issue, Ng revealed the results of a survey he conducted. reconnaissance His team conducted research among more than 120 crypto and Web3 companies that have recently established operations in Hong Kong.
The data showed a bleak picture: 95% of these companies tried to open local bank accounts, and only 20% of them succeeded in doing so within a reasonable time frame.
Most companies reported that the process was extremely time-consuming, with many taking more than six months to complete their banking arrangements. As Ng stressed, such delays are not trivial, as they represent a significant impediment to these companies’ ability to operate and expand in Hong Kong.
Call for change
In response to these challenges, Ng calls for policy reforms that would allow virtual banks more freedom to manage virtual assets. In his translated article on X, he says:
Virtual banks should add diversified services and develop in line with traditional banks. Hong Kong should establish a “virtual assets/digital assets bank” as soon as possible or upgrade the virtual bank to be able to manage virtual assets in coordination with the SAR government’s Web3 development. Hong Kong should accelerate the development of the Web3 ecosystem.
It is worth noting that as Hong Kong continues to improve its cryptocurrency regulations – as evidenced by the launch of a cryptocurrency licensing system that expands services to retail investors – incorporating flexible banking solutions could be a major leap forward.
This development could simplify operations for existing players and attract new entrants looking to venture into the Hong Kong market. Ng concluded:
If we want to become the Web3 center in Hong Kong, we must promote the development of the chain and the entire ecosystem as soon as possible.
Featured image created using DALL-E, chart from TradingView