In a move that could potentially boost the use of cryptocurrencies in Hong Kong, Standard Chartered Bank has announced that it will act as a settlement bank for licensed exchanges. This means that token deposits can be withdrawn in Hong Kong dollars, Chinese yuan, and United States dollars. Additionally, the bank is offering account services to crypto firms.
This announcement comes at a time when the use of cryptocurrencies is becoming increasingly popular in Hong Kong. However, the lack of regulation has made it difficult for businesses to operate in this space. With Standard Chartered Bank’s involvement, it is hoped that this will change.
According to Bloomberg, the bank is also looking into the possibility of launching its own cryptocurrency trading desk. This move would put Standard Chartered Bank in direct competition with other major banks that have already entered the cryptocurrency market.
However, the bank has not yet confirmed whether it will launch a trading desk. In a statement to Bloomberg, a spokesperson for Standard Chartered Bank said, “We continuously monitor the market and client demand, and we will continue to evolve our offering to meet their needs.”
The involvement of a major bank like Standard Chartered Bank could be a significant step towards the mainstream adoption of cryptocurrencies. It could also help to increase the level of trust in this emerging asset class.
However, there are still concerns about the risks associated with cryptocurrencies. The lack of regulation and the potential for fraud and hacking are just a few of the issues that need to be addressed.
Despite these concerns, the use of cryptocurrencies continues to grow in Hong Kong. With Standard Chartered Bank’s involvement, it is hoped that this growth will continue and that the use of cryptocurrencies will become more mainstream.