ZA Bank, Hong Kong’s largest virtual bank, has unveiled a groundbreaking service allowing retail users to trade Bitcoin (BTC) and Ethereum (ETH) directly using fiat currency. The bank announced the launch in a statement on November 25, marking a significant step toward integrating traditional banking with the burgeoning cryptocurrency sector.
Hong Kong residents who wish to use the service must hold a ZA Bank account and complete a mandatory risk assessment. Currently, the offering is limited to Bitcoin and Ethereum, with no plans for other cryptocurrencies disclosed.
ZA Bank Partners with HashKey to Meet Regulatory Standards
The initiative was developed in collaboration with HashKey Exchange, a licensed cryptocurrency platform in Hong Kong. Calvin Ng, the alternate chief executive of ZA Bank, highlighted the partnership as a key factor in meeting regulatory requirements while bridging the gap between conventional finance and digital assets.
“The rise of cryptocurrency presents investors with more diverse asset allocation opportunities,” Ng said.
HashKey Exchange CEO Livio Weng emphasized the alliance’s broader vision, stating that the exchange will continue working closely with ZA Bank to advance the Web3 ecosystem and offer a wider range of financial services.
Regulatory Backdrop and Hong Kong’s Expanding Crypto Market
ZA Bank’s foray into crypto follows a sandbox trial of its virtual asset trading service launched in October. Retail crypto trading was only permitted in Hong Kong starting in August 2023, as the city pushes to position itself as a global crypto hub.
The Securities and Futures Commission (SFC) has so far licensed three cryptocurrency exchanges in Hong Kong: OSL and HashKey in 2020 and 2022, respectively, and Hong Kong Virtual Asset Exchange (HKVAX) in October 2023. The SFC has indicated that additional approvals for exchanges and digital asset firms could be forthcoming by year-end.
ZA Bank and HashKey: Leaders in Their Fields
ZA Bank, licensed by the Hong Kong Monetary Authority in 2019, is the city’s first and largest digital bank, boasting over 800,000 users. HashKey, established in 2018, is a leading crypto exchange with a focus on regulatory compliance and innovation in the Web3 space.
As the region’s crypto ecosystem continues to expand, ZA Bank’s new service represents a significant milestone in merging traditional banking with digital assets, potentially setting a benchmark for financial institutions worldwide.
