Hong Kong’s leading virtual bank, ZA Bank, has unveiled a new service allowing retail users to trade Bitcoin and Ethereum directly using fiat currency.
In a statement issued on 25 November 2024, ZA Bank announced that Hong Kong residents must hold an account with the bank and complete a risk assessment to access the cryptocurrency trading service via its mobile app.
Currently, the offering is limited to Bitcoin and Ethereum, with no additional cryptocurrencies mentioned.
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ZA Bank Taps HashKey To Offer Crypto Services
The initiative is part of a collaboration with licensed cryptocurrency exchange HashKey to ensure compliance with regulatory standards.
“The rise of cryptocurrency presents investors with more diverse asset allocation opportunities,” Calvin Ng, Alternate Chief Executive of ZA Bank, said.
ZA Bank has been exploring virtual asset trading since launching a sandbox trial in October. Retail crypto trading became legal in Hong Kong in August 2023, following regulatory advancements by the Securities and Futures Commission (SFC).
Currently, only three exchanges—OSL, HashKey, and HKVAX—hold licenses, though more approvals are anticipated by year-end.
Licensed by the Hong Kong Monetary Authority in 2019, ZA Bank is the city’s first and largest digital bank, serving over 800,000 users.
“We believe this innovative collaboration has initiated a ‘swarm effect.’ We can build the best liquidity and trading network in the licensed market by serving and integrating dozens of financial institutions,” HashKey Exchange CEO Livio Weng said.
“HashKey Pro will continue to partner with more entities, offering users a wider array of digital asset services and accelerating the comprehensive upgrade of the digital economy.”
More Good News as Bull Market Rages On!
ZA Bank has become the first bank in Hong Kong to offers direct #cryptocurrency trading services to its retail users.
This is huge! Just one year ago, no one would have thought that banks would start offering #crypto services. pic.twitter.com/SIn6VeKW9l
— Whale Catcher
(@Whale__Catcher) November 25, 2024
Last month, ZA Bank launched a sandbox trial for its virtual asset trading service to provide retail investors with a regulated environment to engage in virtual asset trading through its app.
The pilot trial serves as a preparatory phase for the official launch of the virtual asset service. Following its successful completion, ZA Bank plans to roll out the service to its customers, ensuring they can trade digital assets within a strictly regulated framework.
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Hong Kong To Approve More Crypto Exchange Licenses
Hong Kong’s Securities and Futures Commission (SFC) is set to grant more digital-asset exchange licenses by the end of 2024 following a five-month review of exchanges operating under provisional permits.
Since June, Hong Kong’s SFC has conducted on-site inspections of these platforms and found several practices that fell short of regulatory expectations.
The inspections revealed that some crypto firms are overly dependent on a limited number of executives for the custody of client assets. This raises concerns about their ability to manage these responsibilities effectively.
However, the regulator said once the exchanges align with SFC’s recommendations, they will receive restricted licenses. To fully lift these restrictions, exchanges must undergo third-party reviews in coordination with the SFC.
This comes as the region has witnessed a series of crypto exchange closures as of late.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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