Weige Cai, blockchain business manager of Tencent revealed that they have received a green signal from the Hong Kong regulators to open a virtual bank.

Tencent, the Chinese multinational conglomerate holding firm will set up a blockchain-based virtual bank. Speaking at the World Blockchain Summit in Wuzhen, China, Weige Cai states that Tencent received approval from Hong Securities and Futures Commission (SFC). As per the report, the firm will first build a team focused to build the blockchain-based banking platform.

Undoubtedly, China isn’t leaving any opportunity to lead the wave of crypto and blockchain. According to the report, SFC approved a similar license to 12 firms so far. While addressing the audience at the summit, Cai remarked;

“Tencent Virtual Bank has obtained a Hong Kong license and is currently preparing a blockchain virtual banking team.”

However, other details of the blockchain based bank are unclear. Tencent is the big name in China and this giant is also a brand behind WeChat, the popular messaging app in China. The firm is also quite active in the blockchain ecosystem and is hoping to tap into the region’s $15 billion virtual banking market.

Consequently, SFC’s decision of approving Tencent’s move is a bullish sign of crypto innovation.

“Hong Kong’s new regulations and supervision on digital assets transactions validate the importance of blockchain technology and digital assets, which is good news for the whole industry,” said Cai. 

Furthermore, Hong Kong’s SFC had issued rules for licensing crypto exchanges earlier this week. The new regulatory frameworks were issued to centralize existing and upcoming virtual asset trading platforms within HK citing the intent to protect investors. This being said, Reuters reported on November 07, stating Hong-Kong based OSL became the first crypto firm to apply for crypto exchange license from the Securities and Futures Commission (SFC).

Appreciating the move of OSL, its chief executive Wayne Trench said;

“We congratulate the SFC on announcing its digital asset licensing regime and are proud to be the first applicant,” 

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