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.