ZA Bank, Hong Kong’s largest virtual lender, intends to expand its business into the region’s growing digital asset sector. The banking platform will offer crypto-to-fiat conversions and account services as the Chinese financial center looks to embrace the industry.
ZA Bank to Serve Licensed Cryptocurrency Exchanges in Hong Kong
Hong Kong’s first and largest virtual bank, co-founded by Chinese billionaire Ou Yaping, seeks to facilitate transfers of digital and fiat currencies for participants in the city’s developing crypto sector, Bloomberg reported, citing the lender’s top executive.
According to CEO Ronald Iu, ZA Bank will offer crypto to fiat currency conversions through authorized exchanges, acting as a settlement bank for customers who deposit digital currencies on trading platforms and want to withdraw Hong Kong and US dollars. . or Chinese yuan. Iu pointed out:
For the dozen or so interested firms, large or small, foreign and local, the main concern is having a way to make things work.
According to the report, ZA Bank is already working with the two currently licensed crypto exchanges in Hong Kong, Hashkey and OSL. It intends to provide the service to others as more platforms obtain a license to operate in China’s special administrative region.
In a post-pandemic world, Hong Kong has been opening up to the crypto space, despite its recent troubles. Aiming to become a crypto hub, the city is looking to revive its status as a global financial center.
There have been signs that Hong Kong’s push into the crypto market is being supported by Beijing, despite a crackdown on crypto activities on the mainland. TO report revealed in late March that state-owned Chinese banks are ready to serve crypto firms in the city. One of the largest insurers in China backed the launch of two cryptocurrency-focused funds in early April.
Hong Kong authorities are now working to revamp the legal framework for cryptocurrency exchanges to allow them to open up to retail investors. Financial regulators in the region are also taking steps to improve access to banking services for cryptocurrency companies.
Currently, ZA Bank plans to participate only with licensed digital asset exchanges. It is performing anti-money laundering (AML) checks in accordance with existing requirements and has not had any AML issues in recent months, according to its deputy CEO, Devon Sin.
The virtual bank is also opening online accounts for Web3 startups and other small and medium-sized businesses. Around 100 of these companies have access to their services after a trial in a regulatory sandbox, the report details.
Do you expect Hong Kong to continue to improve access to banking services for cryptocurrency businesses? Tell us in the comment section below.
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