One of Hong Kong’s largest virtual banks is focusing on fiat and cryptocurrency transfers as well as account services for the city’s expanding digital asset market. The billionaire Chinese businessman Ou Yaping formed this bank, which is known as the ZA Bank.
ZA Bank’s New Path to Take
According to the lender’s CEO, Mr. Ronald Iu, ZA Bank will now likely provide token-to-fiat currency conversions through authorized exchanges. In addition, Mr. Iu said, ZA bank will serve as a settlement bank for clients, enabling withdrawals in Hong Kong, Chinese, and US dollars after clients deposit crypto tokens with exchanges.
Mr. Iu further emphasized that HashKey and OSL, the only two cryptocurrency exchanges in Hong Kong that presently hold licenses, are already using the aforementioned business model. It’s also important to note that ZA Bank is currently preparing to offer the same service to other exchanges as soon as they obtain licenses. In an interview, Mr. Iu stated that having a way to make things work is the top issue for the numerous interested firms, big or little, from overseas and locally.
Hong Kong’s Journey Towards Crypto Industry
In an effort to restore its reputation as a financial hub after years of Covid-19 restrictions and political unrest, Hong Kong has entered the cryptocurrency market as the globe is beginning to turn its back on the sector, which has been going through a tough patch for the past few months.
The city’s goals have, however, been significantly hampered by the lack of financial access. According to reports, Hong Kong’s banking and security regulators plan to conduct a roundtable discussion for bankers and cryptocurrency users later in April to exchange experiences and viewpoints on banking services. In which the aforementioned city intends to implement a revised framework for virtual asset exchanges by June 1 that enables exchange operators to accept retail investors.
However, due to stringent know-your-customer and anti-money laundering (AML) regulations that emerged from the recent collapse of the Silicon Valley Bank, which had a significant impact on the banking sector, traditional banks have been hesitant to offer their services. After a trial with roughly 100 organizations in a regulatory sandbox, ZA Bank is now providing online account openings for local Web3 start-ups and small and medium-sized businesses.
Additionally, according to Mr. Devon Sin, the ZA Bank’s acting chief executive. The aforementioned bank has already established a connection to the city’s corporate register data, allowing for the minimal entry and cross-checking of information. In order to comply with regulatory standards, the bank is currently planning to engage in and undertake AML scrutiny against the customary checklists.