HSBC offers cryptocurrency services in Hong Kong

Specifically, independent reports cited by cointelegraph.com revealed that HSBC is now allowing its users to buy and sell Bitcoin as well as Ether-based exchange-traded funds (ETFs). The report further details that HSBC will offer cryptocurrency ETFs listed on the Stock Exchange of Hong Kong. The main goal of this move is to provide more access to cryptocurrencies to local users. 

According to scmp.com, as of March 2022, HSBC Hong Kong had 1.7 million active mobile customers and around 95% of all HSBC retail transactions in Hong Kong are reportedly processed online. These new cryptocurrency services come in the context of HSBC’s Virtual Asset Investor Education Centre launch. This project was designed to offer protection for investors by informing them about the potential risks and requiring them to read and confirm educational materials and risk disclosures before committing to an investment. 

Cointelegraph previously reported that the central bank of Hong Kong inquired a series of major banks such as HSBC on why they are not accepting crypto exchanges as clients. In addition, the Hong Kong Monetary Authority has reportedly asked banks such as HSBC and Standard Chartered to accept crypto exchanges as clients. 

The news came in the context of a previous circular issued by the HKMA, which urged financial institutions to keep a closer eye on new market developments and become more open to new sectors such as the crypto market.

Other HSBC developments

HSBC has been following up on a strategy that involves exiting less profitable businesses around the world and focusing on expanding into several Asian markets. The process of shutting down these less profitable businesses is expected to happen in a gradual manner over the course of a few years. 

In June 2023, the bank has decided to shutter its wealth and personal banking business in New Zealand. HSBC representatives cited by Reuters talked about the changing operating requirements in the market and the scalability of its wealth and personal banking business in New Zealand. 

In November 2022, HSBC announced the possible sale of its New Zealand business and revealed its plans to close 114 branches in the UK in an effort to increase returns. In May 2023, Reuters reported that HSBC was analysing the possibility of an exit from as many as a dozen countries, or one in five of the markets it operates in, all in a bid to gain momentum for its Asian expansion.