Hong Kong‘s largest virtual bank, ZA Bank, has launched a new service allowing retail customers to buy and sell Bitcoin and Ethereum directly with fiat currency. The move is part of the bank’s effort to integrate traditional banking with the growing cryptocurrency market.
According to a statement from ZA Bank on November 25, customers will need to have an account with the bank and undergo a risk assessment before using the new crypto service, which is connected to the bank’s mobile app. This feature will allow users to buy and sell Bitcoin and Ethereum, but no other cryptocurrencies are currently available through the platform.
Calvin Ng, the alternate chief executive of ZA Bank, explained that the new service was launched in collaboration with the cryptocurrency exchange HashKey to meet regulatory requirements and enhance the synergy between traditional banking and the emerging crypto industry. Ng emphasized that cryptocurrency’s rise offers investors more diverse opportunities for asset allocation.
“Cryptocurrencies have become an integral part of the global financial landscape,” said Ng. “This service reflects our commitment to offering a wide range of diversified financial services to meet the needs of our customers.”
Partnership with HashKey to Strengthen Web3 Ecosystem
Livio Weng, CEO of HashKey Exchange, also spoke about the new service, highlighting the exchange’s ongoing collaboration with ZA Bank. Weng stated that they would continue to work closely to develop the Web3 ecosystem and provide more diversified financial services for users.
ZA Bank had previously launched a sandbox trial for its virtual asset trading service in October 2023. This was part of Hong Kong’s broader push to integrate cryptocurrency into its financial system, which officially allowed retail crypto trading in August 2023.
Currently, only three exchanges are licensed by Hong Kong’s financial regulator, the Securities Futures Commission (SFC). These include OSL, which received its license in 2020, HashKey Exchange, licensed in 2022, and the Hong Kong Virtual Asset Exchange (HKVAX), which was granted a license in October.
The SFC has indicated that it is likely to approve more licenses for crypto exchanges and digital asset firms in the region by the end of the year, signaling the growing importance of cryptocurrency in Hong Kong’s financial landscape.
ZA Bank, which was licensed by the Hong Kong Monetary Authority in 2019, has since become the largest and one of the most prominent digital banks in Hong Kong, serving over 800,000 users. By launching this new crypto service, ZA Bank continues to position itself at the forefront of Hong Kong’s digital banking and cryptocurrency developments.
The collaboration with HashKey, which was founded in 2018, further strengthens ZA Bank’s ties to the digital asset industry, making the bank a key player in driving forward the adoption of Web3 technologies in Hong Kong.
Hong Kong’s Evolving Crypto Regulatory Framework
Retail crypto trading in Hong Kong only became officially permitted in August 2023, marking a significant shift in the region’s regulatory stance towards digital assets. While only three exchanges are currently licensed to operate in the territory, more licenses are expected to be granted as the regulatory framework evolves. The SFC has already indicated that additional licenses for crypto exchanges and digital asset firms are likely to be approved by the end of 2024, paving the way for further growth in Hong Kong’s crypto sector.
The move to embrace retail crypto trading and virtual assets is part of Hong Kong’s broader strategy to establish itself as a global hub for digital finance. As more regulatory clarity emerges, Hong Kong is positioning itself as a leading destination for cryptocurrency and blockchain innovation, attracting both local and international firms looking to capitalize on the region’s evolving financial ecosystem.
| Feature | Details |
|---|---|
| Cryptocurrencies Available | Bitcoin (BTC), Ethereum (ETH) |
| Registration Requirements | Bank account, risk assessment |
| Service Launch Date | November 25, 2024 |
| Partnership | Collaborates with HashKey Exchange |
| Regulatory Environment | Licensed by Hong Kong Monetary Authority, regulated by SFC |
| Retail Crypto Trading Start | August 2023 (Hong Kong) |
| Licensed Exchanges in Hong Kong | OSL (2020), HashKey (2022), HKVAX (2024) |
Hong Kong’s proactive stance on integrating cryptocurrency into its financial system, including ZA Bank’s new crypto trading service, demonstrates the region’s commitment to becoming a global hub for digital assets. As regulatory frameworks continue to mature, Hong Kong is well-positioned to lead in the digital finance space. The collaboration between traditional banks and cryptocurrency exchanges reflects the growing acceptance and normalization of crypto in the global financial ecosystem. However, it’s important to ensure that sufficient consumer protections are in place as this new market develops to prevent potential risks associated with volatility and security.
Featured image credit: zaozaa09 via Freepik
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