- Hong Kong’s ZA Bank plans to expand into the digital assets sector by offering crypto-to-fiat currency conversions and account services.
- ZA Bank will act as a settlement bank for licensed crypto exchanges in Hong Kong, initially working with Hashkey and OSL, and plans to provide services to other platforms as they obtain licenses.
- Hong Kong seeks to embrace the crypto industry and become a global crypto hub.
ZA Bank, Hong Kong’s largest virtual bank, has announced plans to enter the region’s thriving crypto sector. According to reports by Bloomberg, ZA Bank intends to offer crypto-to-fiat conversion and account services as Hong Kong rapidly becomes a primary attraction site in the Web3 world.
This development was revealed by ZA’s CEO, Ronald Lu, earlier this week while speaking at Hong Kong’s Web3 festival. According to Lu, the virtual-only bank will provide cryptocurrency-to-fiat currency conversion through licensed cryptocurrency exchanges.
As a result, ZA Bank will act as a settlement bank for individuals with assets on various trading platforms who want to withdraw fiat currency, albeit only Hong Kong dollars, US dollars, and Chinese yuan.
ZA Bank has already formed partnerships with crypto exchanges, Hashkey and OSL, with plans to expand this crypto conversion service as more trading platforms are permitted to operate in the Chinese particular administrative region.
ZA Bank Will Open Accounts for Web3 Companies
Founded in 2018, Za Bank is regarded as Hong Kong’s first and largest virtual-only bank. According to market data, ZA serves more than half of Hong Kong’s virtual bank customers and has assets worth more than $760 million.
ZA’s CEO also revealed that, besides its crypto-to-fiat conversion service, the online bank would open accounts for Web3 startups and small and medium-sized blockchain businesses.
Lu says, “As Hong Kong is stepping up efforts to cultivate a web3-friendly environment, ZA Bank’s online account opening for Web3 startups represents a major step forward in integrating traditional banking services with the web3 world.”
According to Bloomberg, over 100 companies are now using this service after testing in a regulatory sandbox.
Hong Kong Keeps Pushing into Cryptoverse
Hong Kong has recently become known for its crypto-friendly policies, attracting key players in the blockchain space globally.
Despite recent issues plaguing the $1 trillion crypto industry, the Hong Kong government has maintained its efforts to transform the Chinese particular administrative region into a global crypto hub.
With the growing regulatory crackdown cases in the United States and the ever-present blanket crypto ban in mainland China, Hong Kong’s positive response to the crypto world has become critical.
On April 11, the state government established the Web3 Association, intending to drive the long-term development of Web3 in Hong Kong.
A local news agency reported that the newly formed Web3 association comprises several key industry stakeholders and members of the state legislative council.
According to the report, the association will use various strategies to achieve its goal, including data monetization, asset tokenization, and promotion of digitization to traditional businesses and industries.
