ZA Bank, the largest virtual bank in Hong Kong, has rolled out a new feature enabling retail customers to buy and sell Bitcoin and Ethereum directly with fiat currency. The move marks an important step in integrating traditional banking with cryptocurrency services for local residents.
To access this new cryptocurrency trading service, individuals in Hong Kong must hold an account with ZA Bank and are required to complete a risk assessment. Currently, the service is limited to transactions involving Bitcoin (BTC) and Ether (ETH), with no other cryptocurrencies available for trading at this time.
The initiative is the result of a collaboration with the cryptocurrency exchange HashKey, aimed at ensuring compliance with local regulatory standards. The partnership reflects an overarching objective to create a seamless intersection between banking and cryptocurrency.
The introduction of retail crypto trading in Hong Kong is relatively recent, having begun in August 2023. As it stands, only three exchanges are licensed by the Securities and Futures Commission (SFC) of Hong Kong, which oversees the regulation of financial services. OSL and HashKey attained their licenses in 2020 and 2022, respectively, while the Hong Kong Virtual Asset Exchange (HKVAX) obtained its license in October 2023.
There is potential for further regulatory approvals in the coming months, as the SFC has indicated that additional licenses for crypto exchanges and digital asset firms within the region may be granted by the end of the year. ZA Bank, which received its license from the Hong Kong Monetary Authority in 2019, has become a major player in the digital banking landscape with over 800,000 registered users. HashKey itself has been operational since 2018 and continues to establish its presence in the crypto market.
