Hong Kong’s largest virtual bank, ZA Bank, has launched a new service enabling retail users to trade Bitcoin and Ethereum directly with fiat currency. This marks a groundbreaking moment in Hong Kong’s evolving crypto landscape, allowing users to access the crypto market through the comfort of a bank-backed application.
The service, announced on November 25, requires users to hold a ZA Bank account and complete a mandatory risk assessment. Currently, the offering supports only Bitcoin (BTC) and Ethereum (ETH), with no mention of additional cryptocurrencies. This initiative is part of a collaboration between ZA Bank and HashKey, a licensed cryptocurrency exchange, designed to align with Hong Kong’s stringent regulatory framework.
Calvin Ng, ZA Bank’s alternate chief executive, emphasized the bank’s commitment to catering to investor demand. “The rise of cryptocurrency presents investors with more diverse asset allocation opportunities,” Ng stated, underscoring the potential for merging digital currencies with traditional financial services.
A Boost for Hong Kong’s Web3 Ecosystem
HashKey Exchange, ZA Bank’s partner in this initiative, views the collaboration as a pivotal move for Hong Kong’s Web3 ecosystem. Livio Weng, CEO of HashKey, expressed optimism, stating the exchange will continue to work closely with ZA Bank to expand diversified financial services and drive innovation within the region’s digital asset space.
This rollout follows a sandbox trial launched by ZA Bank in October, aimed at testing the virtual asset trading service. The timing aligns with Hong Kong’s progressive regulatory stance, which only allowed retail crypto trading starting in August 2023. Currently, three exchanges—OSL, HashKey, and Hong Kong Virtual Asset Exchange (HKVAX)—are licensed by the Securities Futures Commission (SFC).
A Milestone for Digital Banking Sector
ZA Bank, licensed by the Hong Kong Monetary Authority in 2019, has quickly established itself as a leader in the digital banking sector, boasting over 800,000 users. With this latest offering, the bank solidifies its role as a key player in the region’s financial innovation.
As the SFC hints at approving more licenses for crypto exchanges by the end of the year, ZA Bank’s crypto integration sets a precedent, paving the way for increased adoption and further blending of traditional banking with the rapidly growing digital asset market.
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