HSBC, Standard Chartered Face Pressure From Hong Kong to Take on Crypto Clients: Report

HSBC and Standard Chartered are among lenders facing pressure from Hong Kong’s banking regulator to take on crypto exchanges as clients, the Financial Times reported on Thursday, citing three people with knowledge of the matter.

The UK-based lenders and the Bank of China were questioned by the Hong Kong Monetary Authority (HKMA) last month on why crypto exchanges were not being accepted as clients, according to the report.

HSBC, Standard Chartered and the HKMA did not immediately respond to a Reuters request for comments.

The HKMA, in a letter to lenders on April 27, said diligence on potential customers should not “create undue burden”, especially “for those setting up an office in Hong Kong,” the FT report said.

Hong Kong’s urge for banks to accept crypto clients comes at a time when countries such as the US are doubling down on crypto exchanges, with the US affiliate of Binance halting dollar deposits last week after the Securities and Exchange Commission asked a court to freeze its assets.

© Thomson Reuters 2023