The largest virtual-only lender in Hong Kong, ZA Bank, has announced plans to expand into the region’s developing digital assets market. The aforementioned banking platform intends to provide account services as well as crypto-to-fiat conversions as the Chinese financial center looks to embrace the sector.
ZA Bank to Offer Crypto Services Under Hong Kong License
According to Bloomberg, who cited the lender’s top executive, the first and biggest virtual bank in Hong Kong—co-founded by Chinese billionaire Ou Yaping—is now focusing on making transfers of digital and fiat currencies for participants in the city’s emerging crypto sector.
According to Ronald Iu, the CEO of ZA Bank, the particular bank is intended to provide cryptocurrency to fiat currency conversions through authorized exchanges. In this capacity, they would serve as a clearing bank for customers who use trading platforms to deposit digital currencies as well as for those who wish to withdraw Hong Kong and US dollars or Chinese yuan.
In light of this, Iu has noted that there are a number of interested businesses, both large and small, both domestically and abroad. However, their main issue is having a way to make things work.
According to a number of reports, ZA Bank is now in the process of collaborating with Hashkey and OSL, the city’s two officially recognized cryptocurrency exchanges. According to reports, the bank wants to offer the service to other platforms as they apply for operating permits in China’s special administrative zone.
The Position of Hong Kong on Crypto Adoption
Despite its previous problems, Hong Kong is now beginning to open up to the cryptocurrency space years after the outbreak. where their main objective is to establish a cryptocurrency hub. In light of this, the city is currently working to restore its reputation as a major financial hub.
Despite the recent crackdown on cryptocurrency activity in mainland China, it is clear that Beijing is supporting Hong Kong’s entry into the market. This is a response to the recent announcement that state-owned Chinese banks are prepared to serve cryptocurrency enterprises in the city, which was made public in late March. One of China’s major insurers also supported the formation of two cryptocurrency-focused funds in early April.
Furthermore, the Hong Kong authorities are now gearing towards revamping the legal framework for cryptocurrency exchanges in order to allow them to open to retail investors. Moreover, the region’s financial regulators are working to increase crypto businesses’ access to banking services.