One measurement doesn’t match all in terms of Anti-Cash Laundering (AML), the Hong Kong Financial Authority (HKMA) reminded banks on April 27. Banks shouldn’t make it unnecessarily laborious to open accounts.
There was a wave of corporations opening financial institution accounts in Hong Kong to benefit from enterprise alternatives, HKMA deputy CEO Arthur Yuen wrote, and “feedback” concerning the difficulties within the course of have ensued. Yuen tied the elevated exercise to the tip of the pandemic.
Whereas finishing up AML due diligence, banks “must also deal with prospects pretty and improve entry to fundamental banking companies by companies via clear, affordable and environment friendly procedures,” Yuen wrote. Moreover:
“There isn’t a authorized and regulatory requirement prohibiting banks in Hong Kong from offering banking companies to digital property (VA) associated entities.”
On the contrary, the Hong Kong authorities has a coverage of selling growth of the digital asset sector, and there’s a regulatory framework in place to guard buyers. Whereas some digital asset companies pose greater AML dangers than others, the Hong Kong banking business will acquire a greater understanding of the sector over time. Subsequently:
“We anticipate that regulated digital asset service suppliers (VASPs) will have the ability to efficiently apply for a checking account via an affordable course of.”
Yuen promised {that a} round containing steerage and greatest practices could be launched and {that a} roundtable could be held “for the banking business and VASPs to alternate views” on April 28.
From Hong Kong’s Financial Authority right now
Thanks Chokepoint 2.0! pic.twitter.com/T3sKs0oPpo
— Jason Choi (@mrjasonchoi) April 27, 2023
Associated: Hong Kong court docket guidelines cryptocurrencies as property
Hong Kong is making a push to change into a world crypto hub and is seen by some because the possible benefactor of america’ more and more virulent anti-crypto crackdown. The area was the primary jurisdiction in Asia to offer entry to crypto exchange-traded funds. A proposal to license retail crypto exchanges is in its session interval and tips for exchanges are anticipated in Could.
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