Existential Crisis! Bitcoin Companies Suffering in Hong Kong
Due to local banking outlets are shuttering and impeding the Hong Kong BTC Companies accounts, the latter ones are facing financial disruptions.
The movement has caused a shifting of Crypto-related firms from the most autonomous of China’s Special Administrative Regions and barriers to the bases status as an open-wide “fintech hub.”
For example, there’s the recent high-profile case of Gatecoin — one of the most popular cryptocurrency exchanges in Hong Kong — that was recently forced to suspend customer transfers after their local bank froze the exchange’s account with no prior warning.
Hong Kong’s bitcoin entrepreneurs say they have been forced to open bank accounts overseas to operate their businesses, after local banks froze or closed their accounts, threatening the city’s push to become a fintech hub. https://t.co/LgVCQyEEmG
Thomas Glucksmann – Gatecoin marketing head, added that HK is ruining its global-scale attractiveness for these type’s of startups by “terminating down” the better looking ones right now in the crypto-community.
“It was a major disruption to our business […] We had just tripled our customer base in a two to three month period, the price of bitcoin was rallying, the amount of money clients were depositing was increasing – the timing couldn’t have been worse.”
It turned out that the bank in question re-enabled GC’s account, ending up with extreme sabotaging, impractical withdrawal limitations.
Cases like Gatecoin’s appear to be trending, and not exceptions, as of late in Hong Kong. Indeed, Hong Kong Bitcoin Association president Leo Weese noted that crypto startups’ “number one fear” in the locale was account severance:
“The few that do have bank accounts are trying to be as cautious as possible. But ironically, by being cautious, they also raise red flags with banks.”
And the most interesting dynamic that could be in play? Weese’s assertion that Hong Kong banks see Bitcoin and Bitcoin companies as “competitors.”
Even after all this, it looks like the banks are not at all on a bearish mood when it comes to the disruptiveness of Bitcoin.
However, having in sight the major level that per coin BTC has reach: $8000, – can these banks just turn their eyes the other way while the particular are has become very profitable?