- ZA Bank to offer crypto accounts
- Facilitating crypto-to-fiat exchanges
- Services not extended to mainland China
ZA Bank, the largest virtual bank in Hong Kong by assets, boldly steps into the crypto world by providing cryptocurrency account services and enabling crypto-to-fiat exchanges, stirring up a heated discussion among industry insiders and regulators.
As reported by Bloomberg on April 12, ZA Bank is set to act as a settlement bank, permitting token deposits at licensed exchanges to be withdrawn in Hong Kong dollars, Chinese yuan, and United States dollars. Additionally, the bank is now offering account services to cryptocurrency firms, following a successful trial in a regulatory sandbox involving around 100 companies.
Despite the groundbreaking move, ZA Bank’s CEO, Ronald Iu, has clarified that clients from mainland China will not have access to the service due to the country’s stringent restrictions on cryptocurrencies.
At present, the only two licensed crypto exchanges in Hong Kong, HashKey and OSL, are offering currency conversion services. However, Iu has confirmed that ZA Bank will extend this service to other exchanges once they obtain the necessary licenses.
The bold move by ZA Bank comes at a time when American crypto firms are struggling to find banking partners, following the downfall of crypto-friendly banks like Silicon Valley Bank, Silvergate Bank, and Signature Bank. With this announcement, ZA Bank positions itself as a potential solution for these companies seeking refuge from US regulatory hostility.
This development is a clear indication of Hong Kong regulators’ determination to transform the region into a global cryptocurrency hub. Many experts in the crypto community are optimistic that Hong Kong’s proactive approach will help it succeed in its endeavor, contrasting it with the stringent regulations currently imposed by US authorities.
In other news, a significant scandal has erupted as employees of the South Korean cryptocurrency exchange Coinone face arrest over allegations of improper listing of certain crypto assets. Tuesday brought the startling revelations to light, as reported by CoinDesk Korea.
