Hong Kong’s bitcoin businesses suffer after local bank accounts frozen
Companies say they have had to go to foreign banks after disruption
Hong Kong’s bitcoin entrepreneurs say they have been forced to open bank accounts overseas to operate their businesses, after local banks froze or closed their accounts, threatening the city’s push to become a fintech hub.
Staff at Hong Kong-based cryptocurrency exchange Gatecoin – which allow customers to exchange their digital money for fiat currency – were left perplexed after they received a phone call from a Hang Seng Bank representative on September 15, where they held a company bank account, and were told their account was suspended without a detailed explanation.
“It was a major disruption to our business,” Gatecoin marketing head Thomas Glucksmann said.
“We had just tripled our customer base in a two to three month period, the price of bitcoin was rallying, the amount of money clients were depositing was increasing – the timing couldn’t have been worse.”
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While the company has had its accounts frozen with other banks before, this was first time it was suspended without prior notice, he added.
Soon after, Gatecoin’s backup account with Fubon Bank was imposed with a daily transaction limit that was significantly below their needs, effectively shutting down the account.