Largest Hong Kong Bank Launches Crypto Trading

Hong Kong’s largest virtual bank, ZA Bank, has introduced a new service enabling retail users to buy and sell Bitcoin and Ethereum directly with fiat currency.

As stated in a Nov. 25 announcement, residents of Hong Kong must hold an account with ZA Bank and complete a risk assessment before accessing this crypto trading feature, which is integrated into the bank’s app.

Currently, the service only supports Bitcoin (BTC) and Ethereum (ETH), with no mention of other cryptocurrencies.

Calvin Ng, the alternate chief executive of ZA Bank, explained that the service was launched in collaboration with cryptocurrency exchange HashKey to comply with regulatory standards and bridge the gap between traditional banking and the crypto space.

“The rise of cryptocurrency presents investors with more diverse asset allocation opportunities,” Ng said.

Livio Weng, CEO of HashKey Exchange, emphasized the partnership’s role in advancing Web3 development and providing users with “diversified financial services.”

ZA Bank began testing this virtual asset trading service through a sandbox trial in October.

Retail crypto trading in Hong Kong was only legalized in August 2023. At present, only three exchanges hold licenses from the Securities and Futures Commission (SFC), Hong Kong’s financial regulator.

Crypto exchanges OSL and HashKey received their licenses in 2020 and 2022, respectively, while the Hong Kong Virtual Asset Exchange (HKVAX) became the third licensed exchange in October.

The SFC has indicated that additional licenses for crypto exchanges and digital asset firms are expected to be granted by the end of the year.

ZA Bank, licensed by the Hong Kong Monetary Authority in 2019, was Hong Kong’s first and largest digital bank, serving over 800,000 users. HashKey, established in 2018, has been a key player in the region’s crypto ecosystem.

Sources:

https://cointelegraph.com/news/hk-virtual-bank-launches-crypto-trading-service-for-retail-users

https://bank.za.group/en/content/2e77475c-f0c0-4d6f-bddc-9aa1121afb95

https://bank.za.group/hk/content/0e803624-fe3e-4485-a61e-fe6d84d2c74f