{"id":622824,"date":"2023-03-28T13:49:36","date_gmt":"2023-03-28T18:49:36","guid":{"rendered":"https:\/\/news.sellorbuyhomefast.com\/index.php\/2023\/03\/28\/first-mover-asia-chinas-state-owned-banks-are-soliciting-hong-kong-crypto-business-but-opening-an-account-is-hard\/"},"modified":"2023-03-28T13:49:36","modified_gmt":"2023-03-28T18:49:36","slug":"first-mover-asia-chinas-state-owned-banks-are-soliciting-hong-kong-crypto-business-but-opening-an-account-is-hard","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2023\/03\/28\/first-mover-asia-chinas-state-owned-banks-are-soliciting-hong-kong-crypto-business-but-opening-an-account-is-hard\/","title":{"rendered":"First Mover Asia: China\u2019s State-Owned Banks Are Soliciting Hong Kong Crypto Business, but Opening an Account Is Hard"},"content":{"rendered":"
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\"Consensus<\/p>\n

Alex Thorn<\/span><\/p>\n

Head of Firmwide Research<\/span><\/p>\n

Galaxy<\/span><\/p>\n<\/div>\n

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Hear Alex Thorn share his take on “Bitcoin and Inflation: It\u2019s Complicated\u201d at Consensus 2023.<\/span><\/p>\n<\/div>\n<\/div>\n

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\n

\"Consensus<\/p>\n

Alex Thorn<\/span><\/p>\n

Head of Firmwide Research<\/span><\/p>\n

Galaxy<\/span><\/p>\n<\/div>\n

\n

\"Consensus<\/p>\n

Hear Alex Thorn share his take on “Bitcoin and Inflation: It\u2019s Complicated\u201d at Consensus 2023.<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n

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<\/p>\n
\"CoinDesk<\/picture><\/div>\n

<\/a><\/div>\n

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\n

\"Consensus<\/p>\n

Alex Thorn<\/span><\/p>\n

Head of Firmwide Research<\/span><\/p>\n

Galaxy<\/span><\/p>\n<\/div>\n

\n

Hear Alex Thorn share his take on “Bitcoin and Inflation: It\u2019s Complicated\u201d at Consensus 2023.<\/span><\/p>\n<\/div>\n<\/div>\n

\n
\n

\"Consensus<\/p>\n

Alex Thorn<\/span><\/p>\n

Head of Firmwide Research<\/span><\/p>\n

Galaxy<\/span><\/p>\n<\/div>\n

\n

\"Consensus<\/p>\n

Hear Alex Thorn share his take on “Bitcoin and Inflation: It\u2019s Complicated\u201d at Consensus 2023.<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n

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Good morning. Here\u2019s what\u2019s happening:<\/b><\/p>\n<\/div>\n

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Prices: <\/b>Bitcoin is hovering around $27,000 after the CFTC takes action against Binance.<\/p>\n<\/div>\n

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Insights: <\/b>The Hong Kong branches of China’s state-run banks want crypto. Now for the hard part.<\/p>\n<\/div>\n

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Prices<\/b><\/h2>\n<\/p>\n<\/div>\n<\/div>\n
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It’s the CFTC vs. Liquidity<\/b><\/p>\n<\/div>\n

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Good morning. Bitcoin is starting the Asia business day down 3.8% to $26,958 after the U.S. Commodity Futures Trading Commission (CFTC)<\/a> sued crypto exchange Binance and founder Changpeng Zhao, alleging it offered unregistered crypto derivatives in the U.S.<\/p>\n<\/div>\n

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Binance\u2019s BNB token is down 5.9% to $308 on the allegations.<\/p>\n<\/div>\n

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The question on the traders’ minds is how much of a going concern Binance is now that the CFTC has struck this blow. On the one hand, Binance\u2019s CEO called the CFTC complaint<\/a> \u201cunexpected and disappointing,\u201d yet, in February, the exchange said<\/a> it is prepared to pay monetary penalties to \u201cmake amends\u201d for sins of the past.<\/p>\n<\/div>\n

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At the same time, there is some debate about how much traders are shrugging off the CFTC\u2019s allegations versus how much bitcoin has an ability to react to news because of a lack of liquidity.<\/p>\n<\/div>\n

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\u201cWhen you have low liquidity, you tend to get very quiet markets,\u201d Dan Gunsberg, co-founder of Solana-based derivatives liquidity protocol Hxro, said during a recent CoinDesk TV appearance. \u201cYou get these jumps in the market and these liquidity vacuums, where things move to a new price and immediately settle down again.\u201d<\/p>\n<\/div>\n

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At the same time as the CFTC goes after Binance, the decentralization narrative continues.<\/p>\n<\/div>\n

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Decentralized derivatives exchange GMX’s token rose by 4% during the last 24 hours, almost in parallel to how tokens of decentralized ether liquid staking platforms rose in February<\/a> when the U.S. Securities and Exchange Commission took aim at staking.<\/p>\n<\/div>\n

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But just because something is decentralized, doesn\u2019t mean regulators can\u2019t go after it<\/a>.<\/p>\n<\/div>\n

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Insights<\/b><\/h2>\n<\/p>\n<\/div>\n
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China Banks’ Push for Hong Kong Crypto Business Faces Headwinds<\/b><\/p>\n<\/div>\n

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China\u2019s state-owned banks\u2019 Hong Kong branches \u2013 semi-autonomous entities that operate under Hong Kong’s rules \u2013 are actively soliciting crypto business, in anticipation of the first phase<\/a> of the Special Administrative Region’s regulatory framework in June. But opening an account with them is another thing altogether.<\/p>\n<\/div>\n

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Bloomberg reported Monday<\/a> that the banks making the pitches have gotten the green light from Beijing, and their respective headquarters.<\/p>\n<\/div>\n

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Sources from multiple crypto companies in Hong Kong that had either been pitched by the banks\u2019 sales representatives, or made inbound inquiries, all say that the criteria for opening an account is burdensome and the know-your-customer\/anti-money laundering (KYC\/AML) process is longer than opening a regular business account.<\/p>\n<\/div>\n

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For instance, banks prefer that executives and key personnel at the crypto company reside in Hong Kong. A definite blocker would be if they are mainland Chinese nationals or U.S. citizens. If the company is owned by a Singapore-based parent, that firm would need to be a licensed entity by the Monetary Authority of Singapore.<\/p>\n<\/div>\n

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Sources were also told to expect a long account-opening process.<\/p>\n<\/div>\n

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These banks, such as Bank of China and Bank of Communications, are some of the world\u2019s largest<\/a>, and it\u2019d be unthinkable a few years ago that they would be actively soliciting crypto business considering Beijing\u2019s hardline stance on the issue and the general hesitation of large banks to engage with crypto.<\/p>\n<\/div>\n

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After all, in the U.S., Silvergate and Signature found their market niche for this exact reason, with analysts saying<\/a> the crypto industry will have a \u201cdifficult time finding traditional banks that will work with it\u201d post their demise. These two banks made \u2013 and lost \u2013 their fortune with crypto: At the turn of the decade, they were both small, unknown banks before embracing crypto; Silvergate reported<\/a> $2.12 billion in assets in December 2019 and peaked at $16 billion in December 2021.<\/p>\n<\/div>\n

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Although both Silvergate and Signature grew significantly throughout crypto\u2019s boom years and institutionalization, their relatively small size means that they fell faster than they would have if they were larger like some of their peers.<\/p>\n<\/div>\n

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But not everyone thinks this is the first chapter of something new, considering the tough onboarding process.<\/p>\n<\/div>\n

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“The city\u2019s digital assets regulation is overall friendly and encourages banks to work with crypto companies, however, banks still currently have stringent requirements in place which makes it difficult for crypto businesses to expand and grow,\u201d Adrian Wang, founder and CEO of Metalpha, a Hong Kong-based digital assets wealth management company, said to CoinDesk. \u201cWe have yet to see major progress in the banking sector to embrace crypto. Hopefully, that will change soon.\u201d<\/p>\n<\/div>\n

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Important events<\/b><\/h2>\n<\/p>\n<\/div>\n
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CoinDesk TV<\/b><\/h2>\n<\/p>\n<\/div>\n
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In case you missed it, here is the most recent episode of “First Mover”<\/a> on CoinDesk TV<\/a>:<\/p>\n<\/div>\n

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A deal has been finalized for what\u2019s left of Silicon Valley Bank. J. Christopher Giancarlo, Willkie Farr & Gallagher senior counsel and former Commodity Futures Trading Commission chairman, shared his reaction. Plus, Cathie Wood’s ARK Invest bought $12.6 million of Coinbase shares on Friday. MarketVector Indexes digital asset product strategist Martin Leinweber shared his crypto markets analysis.<\/p>\n<\/div>\n

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Headlines<\/b><\/h2>\n<\/p>\n<\/div>\n
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CFTC Sues Binance, CEO Zhao Over ‘Willful Evasion’ of U.S. Laws, Unregistered Crypto Derivatives Products<\/b><\/a>: <\/b>The regulator alleged Binance offered unregistered crypto derivatives products and directed U.S. customers to evade compliance controls through the use of VPNs.<\/p>\n<\/div>\n

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Polygon zkEVM Mainnet Beta Goes Live; Ethereum\u2019s Buterin Sends First Transaction<\/b><\/a>:<\/b> The release of Polygon\u2019s zkEVM comes just days after competitor Matter Labs released its own zkEVM, zkSync Era.<\/p>\n<\/div>\n

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G-7 Will Push for Tighter Global Crypto Regulations, Kyodo<\/b><\/a>: <\/b>Discussions on a global framework will speed up ahead of a May meeting of finance ministers and central bankers from the Group of 7 countries.<\/p>\n<\/div>\n

Edited by Greg Ahlstrand and James Rubin.<\/p>\n<\/div>\n

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Learn more about Consensus 2023<\/a>, CoinDesk\u2019s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com <\/a>to register and buy your pass now.<\/p>\n

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Read More<\/a>
\n Sam Reynolds<\/p>\n","protected":false},"excerpt":{"rendered":"

Alex ThornHead of Firmwide ResearchGalaxyHear Alex Thorn share his take on “Bitcoin and Inflation: It\u2019s Complicated\u201d at Consensus 2023.Alex ThornHead of Firmwide ResearchGalaxyHear Alex Thorn share his take on “Bitcoin and Inflation: It\u2019s Complicated\u201d at Consensus 2023.Alex ThornHead of Firmwide ResearchGalaxyHear Alex Thorn share his take on “Bitcoin and Inflation: It\u2019s Complicated\u201d at Consensus 2023.Alex<\/p>\n","protected":false},"author":1,"featured_media":622825,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[673,113993],"tags":[],"class_list":["post-622824","post","type-post","status-publish","format-standard","has-post-thumbnail","category-first","category-mover"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/622824","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=622824"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/622824\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/622825"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=622824"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=622824"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=622824"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}