HSBC is the first Hong Kong bank to provide crypto-derivative products to its clients.

Large financial institutions are still wary of working with the crypto industry in Hong Kong.

HSBC, Hong Kong’s biggest bank, is now facilitating the purchase and sale of Bitcoin ETFs listed on the Hong Kong Stock Exchange. Cryptocurrency exchange-traded funds (ETFs) such as CSOP Bitcoin Futures ETF, CSOP Ethereum Futures ETF, and Samsung Bitcoin Futures Active ETF are all available on the Hong Kong stock market at the present time.

HSBC is the first Hong Kong bank to provide crypto-derivative products to its clients. Colin Wu, a well-known crypto reporter, said that this “move will expand local users’ exposure to cryptocurrencies in Hong Kong.”

According to Colin Wu:

“SCOOP: HSBC, the largest bank in Hong Kong, today allows its customers to buy and sell Bitcoin and Ethereum ETFs listed on the Hong Kong exchange, and is also the first bank in Hong Kong to allow it. The move will expand local users’ exposure to cryptocurrencies in Hong Kong.”

Push by Hong Kong Monetary Authority

According to reports from earlier this month, authorities in Hong Kong have been putting pressure on financial institutions to collaborate with local crypto businesses. The Hong Kong Monetary Authority (HKMA) has questioned the reluctance of financial behemoths like HSBC and Standard Chartered to accept cryptocurrency customers.

It seems, however, that the authorities have finally convinced the major financial institutions to accommodate crypto consumers. The HKMA advised financial institutions to do due research on cryptocurrency firms without unduly restricting their operations, particularly those setting up business in the area to investigate potential growth avenues.

There is no outright prohibition of cryptocurrencies, but large financial institutions are still wary of working with the crypto industry owing to the risk of legal repercussions stemming from customers’ use of cryptocurrencies for criminal purposes like money laundering.

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Filed under: Bitcoin - @ June 26, 2023 4:12 pm