By Anjali Kochhar<\/p>\n\n\n\n
Hong Kong’s virtual banks should intensify their efforts to cater to the Web 3.0 sector, according to legislator Johnny Ng Kit-Chong. Ng, a prominent advocate for cryptocurrencies, emphasized the need for enhanced virtual banking services to better support companies involved in digital assets and blockchain technology. His remarks come as the Hong Kong Monetary Authority (HKMA) has decided to halt the issuance of new licenses for virtual banks, allowing the existing eight licensed operators to consolidate and expand.
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Ng highlighted that despite the government\u2019s previous initiatives to develop virtual banking and foster fintech innovation, the sector still lags behind traditional retail banks in terms of asset accumulation. As of last year, the combined assets of the eight licensed virtual banks totaled HK$49.9 billion (US$6.4 billion), representing just 0.3 percent of the total assets held by all retail banks in Hong Kong. This situation underscores the untapped potential within the virtual banking industry, which, Ng believes, could see profitability by 2026.<\/p>\n\n\n\n
One major area for growth is serving Web 3.0 companies, which are often hindered by difficulties in opening bank accounts and accessing digital-asset services. A recent survey by Ng\u2019s office revealed that 40 percent of Web 3.0 firms find it \u201cextremely hard\u201d to establish accounts with virtual banks. Common obstacles include the requirement for company executives to be physically present in Hong Kong and stringent standards for fixed-term deposits. These challenges have driven some Web 3.0 companies to relocate to more accommodating jurisdictions.<\/p>\n\n\n\n
Ng called for the Hong Kong government to develop a specific blueprint for advancing Web 3.0, suggesting that Chief Executive John Lee Ka-chiu could provide necessary direction in his upcoming policy address.<\/p>\n\n\n\n
Meanwhile, progress is underway as Mox Bank, a virtual bank owned by Standard Chartered, recently launched a cryptocurrency exchange-traded fund (ETF). This move positions Mox Bank as the first virtual bank in Hong Kong to offer spot bitcoin and ether ETFs, aiming to expand digital investment opportunities and enhance financial inclusion.<\/p>\n\n\n\n
Mox Bank\u2019s CEO Barbaros Uygun stated, \u201cWe aim to empower our customers to explore these new digital investment opportunities and diversify their portfolios. Going forward, we will focus on financial inclusion and continue to expand our innovative offerings.\u201d<\/p>\n\n\n\n
About the author<\/strong><\/strong><\/p>\n\n\n\n Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.<\/p>\n","protected":false},"excerpt":{"rendered":" By Anjali Kochhar Hong Kong’s virtual banks should intensify their efforts to cater to the Web 3.0 sector, according to legislator Johnny Ng Kit-Chong. Ng, a prominent advocate for cryptocurrencies, emphasized the need for enhanced virtual banking services to better support companies involved in digital assets and blockchain technology. His remarks come as the Hong […]<\/p>\n","protected":false},"author":4,"featured_media":5343,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[107],"tags":[],"class_list":{"0":"post-5345","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-all"},"yoast_head":"\n