HSBC offers crypto-derivative products in Hong Kong

abdelaziz Fathi

HSBC Hong Kong, a division of the Hong Kong and Shanghai Banking Corporation, has introduced its inaugural cryptocurrency offerings. This move makes the UK-headquartered banking giant the first lender in Hong Kong to allow its customers to buy crypto-derivative products.

According to a report by local journalist Colin Wu on June 26, HSBC HK now permits its customers to purchase and sell exchange-traded funds (ETFs) based on Bitcoin and Ethereum.

The bank will provide cryptocurrency ETFs that are listed on the Hong Kong Exchange (HKEX), which currently features three investment vehicles: the CSOP Bitcoin Futures ETF, CSOP Ethereum Futures ETF, and Samsung Bitcoin Futures Active ETF.

This strategic move by HSBC aims to enhance the exposure of cryptocurrencies among its local clientele in Hong Kong. As of March 2022, the lender reportedly boasted approximately 1.7 million active mobile customers, with nearly 95% of its retail transactions conducted online.

Apart from these novel cryptocurrency services, HSBC has reportedly established the Virtual Asset Investor Education Center. This initiative seeks to educate and safeguard investors against the risks associated with cryptocurrencies.

Accessible through various virtual asset-related products such as the HSBC HK Easy Invest app, HSBC HK Mobile Banking app, and online banking platform, this education center serves as an additional resource for investors. Before customers can begin investing, they must read and acknowledge educational materials and risk disclosures.

Hong Kong’s banking regulator was actively urging banks in the city-state to consider accepting cryptocurrency exchanges as clients, a notable departure from regulatory approaches in other jurisdictions.

According to a Financial Times report, the Hong Kong Monetary Authority (HKMA) has exerted pressure on prominent banks such as HSBC and Standard Chartered to take on crypto exchanges as their clients. Despite regulatory crackdowns in other parts of the world, the HKMA says it aims to create a more inclusive environment for the growth of the crypto sector in the region.

During a recent meeting, Hong Kong’s banking regulator reportedly questioned UK-based firms and the Bank of China about their reluctance to establish relationships with cryptocurrency exchanges. Additionally, in a circular dated April 27, HKMA advised banking institutions not to place an excessive burden on potential clients, particularly those looking to establish a presence in Hong Kong, during the due diligence process.

According to the document, the watchdog explicitly mandated financial institutions to assist cryptocurrency firms, referred to as “virtual asset service providers,” in obtaining access to banking services.

Read this next

Digital Assets

US Treasury official clarifies stance on crypto mixing services

The Financial Crimes Enforcement Network (FinCEN) proposed a rule last year to classify convertible crypto mixing as a “class of transactions” with primary money laundering concerns.

Fintech

Robinhood sweetens US crypto offering with trading API

Robinhood has launched a cryptocurrency trading application programming interface (API) for users in the United States. The new API caters to seasoned crypto traders by enabling automated trading strategies, allowing users to react quickly to market movements and trends.

blockdag

After Retik Finance’s 67% Drop, Investors Turn to BlockDAG’s 30,000x ROI Potential to Recover Their Losses

Explore how BlockDAG’s $37M presale is drawing investors while Retik Finance collapses to $0.403.

Digital Assets

Terraform Labs and co-founder Do Kwon reach settlement with SEC

Terraform Labs and its co-founder Do Kwon have reached a “settlement in principle” with the U.S. Securities and Exchange Commission (SEC) regarding a fraud case, according to a court filing on Thursday.

Market News, Tech and Fundamental, Technical Analysis

FTSE 100 Index Technical Analysis Report 30 May, 2024

FTSE 100 Index can be expected to rise further toward the next resistance level 8325.00, which reversed the price earlier this month.

Chainwire

Sui and Atoma Bring the Power of AI to dApp Builders

The integration of Atoma adds new capabilities to Sui’s flourishing developer ecosystem with unique AI-querying capabilities.

Digital Assets

Talos incorporates DeFi with Skolem acquisition

Talos has acquired Skolem to enable clients to incorporate DeFi into their workflows in a move that sets a new standard for the digital asset OEMS and PMS.

Reviews

Ramp Network Deepens Local Presence by Introducing Payouts in Over 35 National Currencies and Instant Bank Payouts in Europe

Ramp Network expands its reach with new payouts in over 35 national currencies and introduces SEPA Instant bank transfers in Europe, enhancing crypto-to-fiat conversion options for users globally.

<