Banking challenges grow for Hong Kong’s crypto firms after Silvergate, Signature closures, despite city’s push to become hub
- Opening accounts remains a daunting task for many crypto firms in Hong Kong despite the government’s push to make the city a virtual asset hub
- Firms are looking elsewhere for solutions, including Switzerland, the UK and the UAE, where some remaining crypto-friendly banks are based
Cryptocurrency firms in Hong Kong have a headache: after the closure of the world’s two biggest crypto-friendly banks, Silvergate Bank and Signature Bank, they are finding it even harder to open local accounts given that banks in the city are not keen to serve them, industry insiders said.
Hong Kong’s cryptocurrency-related companies, many of which had been banking with Signature or Silvergate, are now scrambling to find ideal banking partners around the world and in their home city.
“Quite a few crypto funds and firms we know are seeking to find local Hong Kong banking partners to do business with and [to] prevent the SVB-style crisis from happening to them again,” said Adrian Wang, founder and CEO of digital asset management firm Metalpha.
But while digital asset regulations in the city have become friendly overall, Hong Kong banks still have stringent requirements when dealing with crypto businesses, Wang said.