Hong Kong’s largest bank, HSBC, has agreed to allow its customers to buy and sell exchange-traded fund shares in bitcoin and ethereum, which are traded on the Hong Kong stock exchange.
This is reported by journalist Colin Wu, citing internal bank documents. According to the documents, the move is intended to significantly expand local users’ cryptocurrency options.
HSBC has launched an education portal for digital asset investors called the Virtual Asset Investor Education Centre. The trading service will be available through HSBC HK Easy Invest, HSB CHK Mobile Banking and internet banking applications. Several cryptocurrency ETFs are already registered in Hong Kong, including the CSOP Bitcoin Futures ETF, CSOP Ethereum Futures ETF and Samsung Bitcoin Futures Active ETF.
It was recently reported that the Hong Kong Monetary Authority (HKMA) is forcing major banks such as HSBC, Standard Chartered and Bank of China to accept cryptocurrency exchanges as clients. In May, the HKMA sent an inquiry to banks asking why cryptocurrency exchanges are not accepted as clients. Although banks do not have a ban on cryptocurrencies, they refuse to work with them due to fears of being prosecuted if the platforms are used for money laundering or other illegal activities. From 1. On June 6, Hong Kong introduced a new licensing regime for Virtual Asset Service Providers (VASPs) that will allow local users to trade cryptocurrencies. The Securities and Futures Commission of Hong Kong (SFC) has already made further recommendations to banks on servicing clients who hold or trade cryptocurrencies.
Local regulators plan to develop a licensing regime for stablecoin issuers by 2024.
