Chinese state-owned companies have crypto exposure through Hong Kong

It’s no secret that the Chinese government is not exactly a fan of crypto. Last year, the government banned mining and trading cryptocurrencies, making it difficult for Chinese to securely crypto to possess. In Hong Kong, however, the situation is different, and the Chinese government sees this too. Chinese state-owned banks are even allowing crypto companies to open accounts in Hong Kong.

Chinese banks help crypto companies

It is also common knowledge that the Chinese government has a big say in the government of Hong Kong. The island is on the doorstep of mainland China, and Xi’s government would love nothing more than for it to officially become part of China.

In addition to the Chinese government, Chinese companies usually also have a lot of influence in Hong Kong. Chinese banks that have established themselves in Hong Kong are just able to deal with the crypto industry.

That writes The Wall Street Journal. The United States has become much stricter on US banks serving companies in the crypto sector after the US banking system came into a crunch. As a result, US banks in Hong Kong also started saying ‘no’ to crypto companies.

Hong Kong is a major hub for the crypto industry, and US banks have left a vacuum. It turns out that Chinese banks are happy to fill these, despite the fact that this should not have been done in mainland China. For example, the Bank of Communications is already holding talks with crypto companies that want accounts with the Chinese state bank.

The same goes for ZA Bank, Hong Kong’s largest virtual bank owned by Chinese insurance company ZhongAn. Crypto exchange customers can deposit money through these companies in Hong Kong dollars (HKD), Chinese yuan (CNY) and US dollars (USD)

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China is a fan of blockchain

Despite the Chinese state is not in favor of open-source cryptocurrencies, it is in favor of blockchain. In fact, a huge portion of all blockchain-related patents appear to come from China. Many companies on the Chinese mainland are also increasingly using blockchain technology, for example to map the origin of food.

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