Ramazan Eles 
Hong Kong‘s aspirations to become a crypto hub are facing a hurdle: difficulty for crypto and Web3 firms to open local bank accounts. This issue is hindering their ability to operate effectively, according to Hong Kong lawmaker Johnny Ng.
Ng, a member of the Legislative Council, recently highlighted the problem in a social media post. He stated that Web3 companies are struggling to establish bank accounts, “hindering their ability to conduct business effectively.”
Ng proposes a solution: “Virtual banks should diversify their services and develop in a complementary manner to traditional banks.” He further suggests empowering virtual banks to manage virtual assets, aligning with the government’s Web3 development goals.
To understand the extent of the problem, Ng’s team conducted a survey with over 120 crypto and Web3 firms that entered Hong Kong after 2022, as reported by Sing Tao Daily.
This difficulty in securing bank accounts persists despite the government’s commitment to establishing Hong Kong as a crypto hub. In 2022, they implemented a welcoming policy for crypto firms, and June 2023 saw the official launch of a crypto licensing regime for trading platforms. This allows licensed exchanges to offer retail trading services.
However, another Hong Kong lawmaker, Duncan Chiu, has expressed concerns about the “excessively stringent” regulations for obtaining a crypto exchange license. He argues that these strict rules discourage major global exchanges from entering the Hong Kong market. Notably, several exchanges, including OKX, Gate.io, and HTX, have withdrawn their license applications in Hong Kong.
Ng and Chiu’s concerns highlight the need for a balanced approach. While regulations are necessary to ensure a secure and compliant environment, excessive restrictions can stifle innovation and hinder the growth of the crypto industry in Hong Kong.
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