HSBC, Hong Kong’s leading financial institution, has just introduced its first-ever cryptocurrency services tailored exclusively for the local market.
Local journalist Colin Wu broke the news on Twitter on June 26. He revealed that the Hong Kong and Shanghai Banking Corporation (HSBC) had implemented a new feature. The addition enables customers to trade exchange-traded funds (ETFs) associated with Bitcoin and Ethereum. This noteworthy advancement establishes HSBC as the pioneering bank in Hong Kong to provide such investment services.
The report states that HSBC plans to provide cryptocurrency ETFs that will be listed on the Stock Exchange of Hong Kong. Currently, the exchange has three crypto ETFs listed. HKEX has CSOP Bitcoin Futures ETF, CSOP Ethereum Futures ETF, and Samsung Bitcoin Futures Active ETF.
The bank in Hong Kong has made a remarkable move to expand the usage of cryptocurrencies among local users. Reportedly, as of March 2022, HSBC Hong Kong had an impressive count of 1.7 million active mobile customers. Reports suggest that online channels handle 95% of all retail transactions carried out by the bank.
The financial institution has reportedly launched the Virtual Asset Investor Education Center to introduce new services. The primary objective of this initiative is to safeguard investors from potential risks associated with cryptocurrencies. To ensure investor protection, individuals are obligated to read and confirm educational materials and risk disclosures before making any investments.
Reportedly, the education centre is accessible through HSBC’s virtual asset-related products. These are the HSBC HK Easy Invest app, HSBC HK Mobile Banking app, and online banking platform.
In mid-June, the Hong Kong Monetary Authority pressured major banks to welcome crypto exchanges as their clients. The central bank and regulator of the region directly interrogated companies like HSBC and Standard Chartered regarding their reluctance to establish relationships with crypto exchanges.