HSBC Hong Kong, a part of the Hong Kong and Shanghai Banking Corporation, has launched its first cryptocurrency services. The bank is now allowing its customers to buy and sell exchange-traded funds (ETFs) based on Bitcoin and Ethereum, according to a report by local journalist Colin Wu on June 26.
The bank will be offering cryptocurrency ETFs listed on the Hong Kong Exchange (HKEX). As of now, HKEX lists three crypto ETFs, which are CSOP Bitcoin Futures ETF, CSOP Ethereum Futures ETF, and Samsung Bitcoin Futures Active ETF.
This move by HSBC aims to increase the exposure of cryptocurrencies among its local customers in Hong Kong. HSBC Hong Kong reportedly had around 1.7 million active mobile customers as of March 2022, and approximately 95% of all its retail transactions in Hong Kong were conducted online.
In addition to the new cryptocurrency services, HSBC has also reportedly launched the Virtual Asset Investor Education Center. This initiative aims to educate and protect investors from the risks associated with cryptocurrencies. Before customers can start investing, they are required to read and confirm educational materials and risk disclosures. This education center is accessible through HSBC’s virtual asset-related products such as the HSBC HK Easy Invest app, HSBC HK Mobile Banking app, and online banking platform.
This development follows recent reports that the Hong Kong Monetary Authority was pressuring major banks, including HSBC and Standard Chartered, to accept crypto exchanges as clients. The central bank and regulator of the region inquired why these banks were not engaging with any cryptocurrency exchanges as clients.
