ZA Bank, Hong Kong’s first and largest digital bank, has achieved a milestone as the first bank in Asia to offer direct cryptocurrency trading services to retail customers through its app.
The service was launched with HashKey to meet regulatory standards and integrate traditional banking with cryptocurrency.
Hong Kong continues to embrace cryptocurrency with the launch of a new service by ZA Bank, the region’s largest virtual bank, allowing retail customers to buy and sell Bitcoin and Ethereum directly using fiat currency. Over the past two years, Hong Kong has taken several pro-crypto steps, including welcoming the rollout of spot Bitcoin and Ethereum exchange-traded funds (ETFs).
By offering a user-friendly platform that simplifies the trading process, the virtual bank aims to empower more individuals to engage with digital assets confidently and securely.
The launch of the service is backed by a partnership with HashKey Exchange, a licensed cryptocurrency platform based in Hong Kong, ensuring that the trading operations adhere to regulatory standards. According to a press release from HashKey Exchange, HashKey Pro provides API trading, block trading services, and a sophisticated account structure that manages permissions for enterprises.
According to the bank, users can begin trading with a minimum deposit of $70, enjoying zero commission for the initial three months. The announcement also stated that the commission would be eliminated and the platform’s fee would be lowered to 0.8% of the transaction value by June 2025. In addition to cryptocurrency trading, the bank offers access to various funds and U.S. stocks.
Hong Kong’s Gradual Embrace of Cryptocurrency
The launch is part of Hong Kong’s effort to establish itself as a hub for the cryptocurrency sector, which is experiencing substantial global growth, projected to see user numbers surpass 560 million by mid-2024, according to industry estimates.
In 2022, Hong Kong mandated licensing for cryptocurrency exchanges, requiring compliance by February 2024. Although over 24 companies submitted applications, nearly half had withdrawn by August, including major firms like Huobi which underscores the difficulties of navigating the city’s regulatory environment. OSL and HashKey obtained their licenses in 2020 and 2022, while the Hong Kong Virtual Asset Exchange (HKVAX) became the third licensed exchange in October.
In another sign of Hong Kong’s embrace of crypto, Circle Internet Financial, the issuer of the USDC stablecoin, revealed its plans to expand into the region, as per a CNF report.This announcement aligns with Circle’s efforts to prepare for an Initial Public Offering (IPO) and reflects expectations for upcoming regulations concerning stablecoins in Hong Kong.
For many retail investors, navigating the complexities of the crypto space can be daunting. The new crypto trading service promises a seamless experience for users, combining a banking platform’s familiarity with cryptocurrency exchanges’ features.
