Hong Kong  pressuring HSBC and Standard Chartered to accept cryptocurrency clients

The Financial Times reported on Thursday that HSBC and Standard Chartered are among institutions under pressure from Hong Kong’s banking regulator to accept crypto exchanges as clients, citing three people with knowledge of the situation.

According to the report, the Hong Kong Monetary Authority (HKMA) questioned the UK-based lenders and the Bank of China last month about why crypto exchanges were not permitted as clients.

HSBC, Standard Chartered, and the HKMA did not react promptly to Reuters’ request for comment.

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According to the Financial Times, the HKMA stated in a letter to lenders on April 27 that due diligence on potential customers should not “create undue burden,” particularly “for those setting up an office in Hong Kong.”

Hong Kong’s push for banks to accept crypto clients comes at a time when countries such as the United States are cracking down on crypto exchanges, with Binance’s US subsidiary suspending dollar deposits last week after the Securities and Exchange Commission requested a judicial freeze on its assets.