As a member of Hong Kong’s Legislative Council, Johnny Ng has asked the city to become friendlier to cryptocurrencies by offering more virtual banking services. This would help Web3 startups that are having trouble getting financial services. In a recent X post, Ng talked about how virtual banks should offer more services and suggested that crypto-focused banks be made.
Based on a report from the Hong Kong Monetary Authority (HKMA), Ng is right to call for action. The report shows how hard it is for Web3 companies to open bank accounts in the region. “The survey showed that Web3 firms had difficulties opening accounts, resulting in inefficiency in developing business locally,” said Ng.
Banking Challenges for Web3
The study found that about 95% of the more than 120 web3 businesses that opened in Hong Kong in 2022 had trouble opening bank accounts with virtual banks. It is well known that the crypto sector faces significant challenges, such as strict rules from officials and cautious behavior from traditional banks.
For 70% of these companies, owners or leaders had to go to Hong Kong more than once, and for 60%, they had to keep fixed deposits. It took more than six months for 54% of the companies to open an account. For 20%, it took between two and five months, and for 3%, they just said no.
Ng wants Hong Kong to change its rules on virtual assets to make them more like what web3 companies need. To stay competitive, he says Hong Kong needs to speed up the growth of its digital environment. This is because policies about virtual assets are becoming a significant problem all over the world. “If the city wants to become the Web3 center, it should promote the development of the entire chain and ecosystem as soon as possible,” said Ng.
