Hong Kong has been super friendly to crypto companies, but there’s a big problem: many of these companies are struggling to open bank accounts.
Banking Blues for Crypto Firms
Johnny Ng, a Hong Kong lawmaker, is pushing for change. He says that crypto and Web3 companies are facing major hurdles when it comes to banking. Even though Hong Kong wants to be a global crypto hub, these companies are stuck with strict banking rules that make it hard to do business.
Ng says virtual banks should step up and offer services to the crypto sector. He thinks this would be a huge win for Hong Kong’s Web3 ambitions and help the digital economy grow.
The Numbers Don’t Lie
Ng’s team surveyed over 120 crypto and Web3 companies that recently set up shop in Hong Kong. The results were pretty shocking:
- 95% tried to open local bank accounts.
- Only 20% were successful within a reasonable timeframe.
- Most companies had to wait over six months to get their banking sorted out.
These delays are a big deal because they make it tough for these companies to operate and expand in Hong Kong.
Time for a Change
Ng wants to see some policy changes that give virtual banks more freedom to handle virtual assets. He’s calling for:
- Virtual banks to offer more diverse services.
- A new “virtual asset/digital asset bank” to be created.
- Existing virtual banks to be upgraded so they can handle virtual assets.
He thinks these changes would help Hong Kong accelerate its Web3 development.
A Big Step Forward
Hong Kong is already working on new crypto regulations, but adding flexible banking solutions would be a huge step forward. It would make it easier for existing crypto companies to do business and attract new players to the market.
Ng sums it up: “If we want to become the Hong Kong Web3 center, we should promote the development of the entire chain and ecosystem as soon as possible.”
