Loom Network(LOOM)

The startup will have a second close in the coming weeks for the round at a $1.4 billion valuation.

As part of its goal of becoming a digital asset hub, Hong Kong is taking another step to ensure this is possible. Regulators of the special administrative region will soon host a meeting between digital asset firms and banks to discuss easing financing for the crypto sector. Bloomberg reports that Hong Kong regulators will facilitate a “direct dialogue” on April 28 at the Hong Kong Monetary Authority (HKMA) to share “practical experiences and perspectives” for crypto firms as it relates to opening and maintaining bank accounts. The HKMA will hold the meeting in conjunction with the Securities and Futures Commission. Hong Kong regulators are convening a meeting between crypto firms and bankers in a bid to ease financing for the sector https://t.co/eXZZ277mXr — Bloomberg (@business) March 28, 2023 The city announced in October that it would position itself as a hub for digital asset and Web3 firms. Hong Kong has since been introducing regulations to attract firms to its shores and has proven successful in doing so, as over 80 foreign and Mainland China digital asset firms have expressed their interest in establishing roots in the city and obtaining operational licenses. The sector, however, faces significant challenges in securing banking services for basic needs such as payroll accounts due to traditional banks’ hesitancy and strict KYC and anti-money laundering requirements. Is Beijing Backing Hong Kong’s Crypto Aspirations? Crypto firms in Hong Kong recently received a glimmer of hope from a very unexpected source: Chinese state-owned banks. Previous reports indicate that several Chinese state-owned banks with branches in Hong Kong have turned crypto-friendly as they offer their services to local crypto companies. The Hong Kong branches of the Bank of Communications, Bank of China and Shanghai Pudong Development Bank have either begun offering banking services to local crypto firms or have made inquiries into doing so. Despite crypto trading being banned in Mainland China since September 2021, rumour has it that banks from Mainland China have been reaching out to crypto-related firms suggesting that Hong Kong’s goal of becoming a global crypto hub may have Beijing’s support. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Reports indicate several Chinese state-owned banks with branches in Hong Kong have turned crypto-friendly as they offer their services to local crypto companies. Bloomberg reports numerous Chinese state-owned banks with branches in Hong Kong have started offering their services to local crypto companies as Hong Kong attracts a growing list of firms looking to establish roots in the city. The city announced in October that it wants to become the next global crypto hub and has started enacting legislation to do so. Christian Hui, the Secretary for Financial Services and the Treasury, recently revealed that more than 80 foreign and Mainland China crypto firms had expressed interest in establishing offices in Hong Kong and obtaining local licenses. He said: As of end-February 2023, Invest Hong Kong has received expressions of interest from over 80 virtual asset-related Mainland and foreign companies in establishing their presence in Hong Kong. These companies included VA exchanges, blockchain infrastructure companies, blockchain network security companies, virtual currency wallets and payment companies, as well as other projects on building the Web3 ecosystem. Chinese Banks Court Firms in Hong Kong The Strait Times reports that the Hong Kong branches of the Bank of Communications, Bank of China and Shanghai Pudong Development Banks have begun offering banking services to local crypto firms or have made inquiries into doing so. Banks from Mainland China have recently been reaching out to crypto-related firms, adding to the rumour that Hong Kong’s goal of becoming a central digital asset hub has Beijing’s support, even though crypto trading has been banned in China since September 2021. The outreach is notable, given the difficulties experienced by crypto firms to secure normal banking services. The move is especially significant after the failures of U.S. tech banks SVB, Silvergate Bank and Signature Bank. Securing banking services for crypto firms has never been an easy feat. Banks often shy away from crypto firms due to their anonymous nature. Anonymity has been a red flag for traditional banks where KYC procedures are required for compliance. Hong Kong-based crypto firms who have agreed to speak on the condition of anonymity say the difficulty in obtaining banking services has forced many digital asset firms to find workarounds to meet their banking needs. Firms say it often takes up to three months to secure corporate bank accounts, compared to one month for non-crypto firms. The significant delays mean they often contact more than a dozen lenders. Concerns, however, remain as even with a bank account, banks often flag transactions related to crypto firms and can suspend accounts after an initial warning. The realities for those who deal in crypto are even more challenging, considering almost no traditional banks offer to help transfer tokens to fiat as a regular service. The alternative is to turn to crypto-friendly banks overseas. The future for digital asset firms certainly looks much better if more traditional banks back the sector. With support from the banking sector and the Hong Kong government’s continued investment in developing its regulatory framework, the city is primed to become the world’s leading crypto hub. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Raleigh, N.C.-based First Citizens is the 30th largest bank in the U.S., with $109 billion in assets, and recently completed an acquisition of New York-based commercial lender CIT.

Taking to Twitter, Mike McGlone, a Senior Macro Strategist at Bloomberg Intelligence, highlighted the firm’s report excerpts. Focusing particularly on the aspect that centres Bitcoin, McGlone shared...