Major Chinese tech company Tencent was recently been granted a blockchain bank license from the Hong Kong Monetary Authority, with the move strongly indicating that Hong Kong regulators are ready for more blockchain and cryptocurrency activities in its market.
Hong Kong’s Monetary Authority is the main agency overseeing the stability of the banking and monetary system in the jurisdiction, according to Decrypt.
Weige Cai, Tencent’s General Manager for blockchain, made the announcement about the license at a blockchain conference in Wuzhen, China, stating:
“Tencent Virtual Bank has obtained a Hong Kong license and is currently preparing a blockchain virtual banking team.”
Though the company offered no further details, several media in China saw the move as a positive turn in the cryptosphere. Moreover, financial regulators in Hong Kong are reportedly issuing new rules for virtual securities, further demonstrating increased acceptance of blockchain and crypto in general.
The major Chinese tech firm has been actively developing blockchain technology, and is just one of the many mainland companies looking to expand into Hong Kong, where the virtual banking market is worth US$15 billion as it provides financial services to customers with much lower fees.
Established five years ago, WeBank, a firm backed by Tencent in China, currently boasts over 60 million customers on its platform.
However, some are concerned about the developments of Tencent’s blockchain bank in Hong Kong, which may face hostility from customers as Hong Kongers are now becoming more wary of sharing their personal information with mainland Chinese companies.
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