Banking Giant HSBC Enables Bitcoin ETF Trading in Hong Kong
The largest bank in Hong Kong, HSBC, is now enabling trades in Bitcoin exchange-traded funds (ETFs) listed on the Hong Kong Stock Exchange. The Hong Kong stock market now has many cryptocurrency exchange-traded funds (ETFs).
When it comes to offering cryptocurrency derivatives to its customers. HSBC is the first Hong Kong bank to do so. A prominent crypto writer named Colin Wu has stated that this step will increase local users’ acquaintance with cryptocurrencies in Hong Kong.
Colin Wu stated:
“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.”
Reluctance of Working with Crypto Firms
Earlier this month, news emerged that officials in Hong Kong were pressuring banks to partner with local crypto companies. The Hong Kong Monetary Authority (HKMA) is questioning the unwillingness of banking giants to welcome clients who want to transact in cryptocurrencies.
It would seem, however, that the authorities have succeeded in getting the main banking institutions to accept cryptocurrency customers. Financial institutions were urged by the Hong Kong Monetary Authority to do a thorough study on cryptocurrency enterprises. Without unreasonably constraining their operations. This was especially important for new businesses opening up shop in the region to look into expansion opportunities.
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Although cryptocurrencies are not explicitly banned, major financial institutions are nonetheless hesitant to partner with the crypto business due to the potential of legal ramifications coming from consumers’ usage of cryptocurrencies for illicit reasons, such as money laundering.