WSJ: Bank of Communications HK Subsidiary Cooperating with Licensed Crypto Companies in HK

According to WSJ, the Hong Kong subsidiary of China's Bank of Communications is cooperating with multiple licensed cryptocurrency companies in Hong Kong and is in discussions with other regulated firms to open accounts for them.

Previously, Bloomberg reported in March that the Hong Kong branches of Bank of Communications, Bank of China, and Shanghai Pudong Development Bank had already begun providing banking services to local cryptocurrency companies or had investigated the field.

Major banks have long been skeptical of the cryptocurrency industry, leading to difficulties in obtaining regular banking services, such as opening accounts to pay employees and suppliers. Hong Kong-based cryptocurrency companies say they need to spend up to three months to obtain a corporate bank account, while non-crypto companies typically only need one month. The main reason for the delay is that traditional banks view the anonymity of cryptocurrencies as a risk, and compliance, particularly Know Your Customer (KYC) procedures, is crucial for traditional banks.