Tencent Granted License to Operate a Blockchain Bank
- Tencent blockchain general manager Weige Cai announced the news in a keynote speech at the Wuzhen blockchain conference.
- With this license, Tencent will gain speed in virtual banking over mainland competitors.
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The Hong Kong Monetary Authority has issued a blockchain bank license to China’s leading internet company Tencent. Weige Cai, Tencent’s blockchain general manager made this announcement when delivering a keynote speech at the Wuzhen blockchain conference.
Tencent is assembling a team to run the virtual bank after securing this license. This announcement has been received with bullish confidence from the cryptocurrency industry and is foreseen to open up further innovation.
The bullish outlook has further been buoyed by the Hong Kong Monetary Authority introducing licenses for cryptocurrency exchanges. These new regulations relate to virtual security platforms.
Besides being active in blockchain innovation, Tencent is a leader in social media thanks to WeChat and a trendsetter in research through the Tencent Research Institute.
With this license to operate a blockchain bank, Tencent gains a foothold in Hong Kong’s $15 billion virtual banking market ahead of several mainland competitors.
Tencent is also part of the China mainland entities doing virtual banking. Tencent is fully invested in WeBank that has served more than 60 million customers since its inception five years ago.
As an operator of virtual banking services in both geographies, Tencent is at risk of being at loggerheads with other mainland businesses operating in Hong Kong that refuse sharing information with Chinese corporations.
Blockchain.it reported that Mica Research analysts warned that China’s Central Bank served as WePay’s clearing platform. The cryptocurrency research startup analysts found it fishy that virtual banking licenses are used to operate blockchain virtual banks. These analysts noticed that this may be reactionary to China’s new national policy of spearheading innovation in blockchain technology.
In an emphasis on Chinese President Xi Jinping’s recent mantra, Weige Cai referred to blockchain as an enabling technology that can be integrated with internet of things and artificial intelligence.
- The decision has placed Hong Kong in line with other common law jurisdictions that had previously ruled crypto had the same attributes as property.
- This will give liquidators in Hong Kong greater clarity on how to handle crypto held by companies that are winding down.
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- Cryptocurrency exchange Huobi revealed that it is working on acquiring a crypto trading license in Hong Kong, and on opening a new trading platform in the city.
- The expansion was motivated by the Securities and Futures Commission’s (SFC) upcoming licensing regime, which could also allow retail investors to trade crypto.
- Hong Kong’s SFC has called for public feedback on its newly proposed licensing regime for cryptocurrency exchanges, which is set to take effect in June 2023.
- A key point of the public consultation is whether to allow licensed crypto exchanges to offers services to retail investors, and what protection measures should be put in place.