Chinese tech company, Tencent has been granted a blockchain bank license from the Hong Kong Monetary Authority indicating that regulators in Hong Kong are now ready for more blockchain and cryptocurrency in its market.
Blockchain-Enabled Banking Services
Hong Kong’s Monetary Authority is the main agency oversees the stability of the banking and monetary system in the jurisdiction.
Weige Cai, Tencent’s General Manager for blockchain stated:
“Tencent Virtual Bank has obtained a Hong Kong license and is currently preparing a blockchain virtual banking team.”
The move signifies a positive turn in the crypto space. Hong Kong is reportedly issuing new rules for virtual securities, further demonstrating increased acceptance of blockchain and crypto in general.
Tencent has been actively developing blockchain technology. It aims to expand in Hong Kong, where the virtual banking market is worth US$15 billion as it provides financial services to customers with much lower fees.
Although there are concerns about the development of Tencent’s blockchain bank in Hong Kong as customers in Hong Kong are now becoming more wary of sharing their personal information with mainland Chinese companies.