In a bid to protect the Crypto market, HSBC shutters an account that is alleged to have been used to fund protestors in Hong Kong. This is according to a recent release by the Hong Kong Economic Journal dated November 18. The British Multinational Bank closed the corporate account that it claims was used to pay protestors in Hong Kong.
The Hong Kong protests have been going on for the last five months and have now climaxed, leaving the city in a political crisis. The bank, in a formal procedure, made it clear that it had come to its attention that the account was being used for other purposes that are inconsistent with what is stated in the account’s paperwork. The account holders were issued with a thirty-day notice warning them of the closure of the account. The notice ended this week, which led to the closing of the account. Vinh Tran, the bank’s spokesman said,
“It is our responsibility to protect the financial industry and know our clients. The bank reviews the clients’ accounts on a regular basis. If we notice any activity different from what is stated in the papers, or any missing information, the bank reviews all the activities of the account which might consequently lead to the closure of the account.”
HSBC earned more than 35% of its adjusted income from Hong Kong during the first three quarters of 2019. The company reported this month that business in the city is still doing well despite the political instability. It has maintained its presence in Hong Kong due to pressure to continue standing with the residents in the city.
Just days after the protests in the city doubled, it was reported that the ‘non-seizability’ of Bitcoin is increasing amid the geopolitical turbulence following the crackdown on civil liberties.
Cryptocurrency payment processors are also getting cautious of the political pressure in Hong Kong. It is claimed that BitPay recently blocked Hong Kong Free Press from receiving their donations for several weeks. The Bank of America has also decided to close its account without giving any reason, according to the former financial officer at PayPal.