**Chinese Banks in Hong Kong allowing Crypto Companies to Open Accounts**
Cryptocurrencies are not particularly welcomed by the Chinese government. In fact, the government placed a ban on mining and trading cryptocurrencies last year, which makes it difficult for Chinese citizens to hold crypto in any secure manner. However, the situation is different in Hong Kong, and the Chinese government recognizes that. Interestingly, Chinese state banks are even allowing crypto companies in Hong Kong to open bank accounts.
**Chinese Banks are Assisting Crypto Companies**
It is widely known that the Chinese government has a large say in the administration of Hong Kong. The island is on the doorstep of mainland China, and Xi’s government would like nothing more than to make it an official part of China. Additionally, Chinese companies have a significant impact on Hong Kong, and Chinese banks operating in Hong Kong have the ability to work with the crypto industry.
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According to The Wall Street Journal, the United States has become stricter on American banks that serve crypto companies after the American banking system suffered. As a result, American banks in Hong Kong refused to offer their services to crypto companies. Hong Kong is a significant hub for the crypto industry, and the American banks created a vacuum. However, Chinese banks are happy to fill this vacuum, and it seems that Chinese state banks are in talks with crypto companies to open accounts.
For instance, the Bank of Communications is already engaged in conversations with crypto companies that want to set up accounts with the Chinese state bank. Similarly, ZA Bank, Hong Kong’s biggest virtual bank and owned by the Chinese insurance company ZhongAn, enables customers of crypto exchanges to deposit money in Hong Kong dollars (HKD), Chinese yuan (CNY), and American dollars (USD).
**China is a Fan of Blockchain Technology**
Despite the fact that the Chinese government is not in favor of open-source cryptocurrencies, it is a supporter of blockchain technology. Also, a significant number of blockchain-related patents are issued in China. Many companies on the Chinese mainland use blockchain technology to monitor the origin of food products, among other things.
In conclusion, the Chinese government has taken a harsh stance on cryptocurrencies but has been rather favorable towards blockchain technology. Chinese state banks are allowing crypto companies in Hong Kong to open bank accounts, filling the vacuum created by American banks, who are reluctant to provide services to crypto companies. With the encouragement of blockchain technology, China may play a critical role in advancing its adoption worldwide.