Crypto Quill

Nov 25, 2024, 11:42 GMT+5:30 – ZA Bank, Hong Kong’s largest virtual bank, has announced the launch of a new service that allows retail users to directly buy and sell Bitcoin (BTC) and Ethereum (ETH) using fiat currency. This move marks a significant step towards the integration of traditional banking and cryptocurrency trading in the region.

Key Details of the New Service

• Available Cryptocurrencies: Initially, the service will allow the trading of just Bitcoin and Ethereum. Other cryptocurrencies were not mentioned in the announcement.
• Eligibility: To access the service, Hong Kong residents must have an active account with ZA Bank and undergo a risk assessment process as part of the bank’s compliance with regulatory requirements.
• Integration with ZA Bank’s App: The crypto trading service is fully integrated into the bank’s existing mobile app, making it convenient for users to trade digital assets alongside their traditional banking activities.

Strategic Partnership with HashKey Exchange

The launch of this new crypto trading service was made possible through a partnership with HashKey Exchange, a cryptocurrency exchange platform. Calvin Ng, the alternate chief executive of ZA Bank, emphasized that the collaboration with HashKey was aimed at ensuring the service meets Hong Kong’s regulatory standards while simultaneously facilitating the merging of traditional banking with cryptocurrency.

“The rise of cryptocurrency presents investors with more diverse asset allocation opportunities,” said Ng, highlighting the potential of digital currencies to diversify investment portfolios.

Livio Weng, CEO of HashKey Exchange, echoed this sentiment, adding that the exchange is committed to working closely with ZA Bank to foster the development of Hong Kong’s Web3 ecosystem and provide diversified financial services to users.

A Growing Crypto Landscape in Hong Kong

Retail crypto trading was officially legalized in Hong Kong in August 2023, a move that is expected to further bolster the region’s role as a global crypto hub. Currently, only three exchanges are licensed by Hong Kong’s Securities Futures Commission (SFC) to operate retail crypto services. These include OSL (licensed in 2020), HashKey Exchange (licensed in 2022), and Hong Kong Virtual Asset Exchange (HKVAX), which received its license in October 2024.

The SFC has indicated that more licenses for crypto exchanges and digital asset firms could be issued by the end of this year, signaling growing regulatory support for the sector.

ZA Bank’s Position in the Digital Banking Market

ZA Bank was licensed by the Hong Kong Monetary Authority in 2019 and has since become the largest digital bank in the region, boasting over 800,000 users. This latest development positions ZA Bank as a key player in Hong Kong’s digital finance landscape, where it aims to serve as a bridge between traditional banking and the expanding cryptocurrency market.

The bank’s integration of crypto trading into its platform will allow users to easily purchase Bitcoin and Ethereum alongside managing their traditional banking transactions, providing a seamless financial experience.