ZA Bank, Hong Kong's biggest virtual bank by assets, announced that it would begin offering crypto account services to licensed digital asset companies.
The bank will also enable transfers of crypto and fiat currencies for the clients of licensed exchanges.
- The
bank will serve as a settlement bank to allow clients to withdraw their
digital asset funds at licensed exchanges in Hong Kong dollars (HKD),
Chinese yuan (CNY), and U.S. dollars (USD).
- The bank's CEO,
Ronald Iu, said they have already started offering these services to
HashKey and OSL, the only licensed crypto exchanges in the region.
- The virtual bank will offer the same services to other exchanges as they receive the license.
- Clients from mainland China will not be able to access these services due to the restrictions in the country.
- ZA Bank, launched in 2020, is one of Hong Kong's eight licensed virtual banks.
- Hong Kong plans to turn the region into a crypto hub.
- In March, Hong Kong's Secretary for Financial Services and the Treasury, Christopher Hui,
said more than 80 crypto-related firms sought a presence in the region
as of the end of February, and 23 crypto companies already revealed
their plans to establish their presence.
- The
region will also form a revamped licensing regime for crypto service
providers by June and is working on an extensive regulatory framework
for stablecoins.
- The new regulations are expected to come into force by 2024.
