Hong Kong’s largest online bank is taking a giant leap into the crypto sector. It plans to become the bridge between digital assets and fiat currencies.
On April 12, it was reported that ZA Bank was entering the crypto market. Hong Kong’s largest virtual bank will offer transfers and transfers of cryptocurrencies and fiat currencies.
The digital bank launched in 2020 will also provide account services to the fast-growing crypto sector in Hong Kong.
According to CEO Ronald Eyo, ZA Bank will offer currency conversions from tokens to fiat currencies via authorized exchanges. He added that the bank will act as a “settlement bank for customers to allow withdrawals in Hong Kong, China and US currencies after depositing cryptocurrency tokens on exchanges.”
Banking services for crypto customers
Moreover, the only two digital asset exchanges currently licensed in Hong Kong, HashKey and OSL, will partner with ZA Bank. Iu comment:
“For the dozens of interested companies, big or small, overseas and domestic, their top concern is to have a path to make things work,” he says.
ZA Bank offers online accounts for local crypto and Web3 startups. In addition, it has conducted experiments in a regulatory protection environment that has accommodated about 100 companies.
According to Devon Sin, Head of Retail Banking, he linked the bank to company registration data in the city, allowing for minimal information entry and cross-checking.
However, the bank only plans to deal with licensed exchanges. It will also conduct anti-money laundering procedures to meet regulatory requirements.
ZA Bank will not offer crypto services to Chinese retail customers due to the regime’s restrictions on cryptocurrency trading.
One of the biggest problems that crypto companies in the West face is access to banking services. Banks simply do not like cryptocurrencies and do not want their customers to have access to digital assets.
The outlook in Asia is a little more forward-looking in this regard.
Earlier this week, BeInCrypto reported the launch of multi-million dollar investment funds targeting Asian crypto startups.
Hong Kong attackers and America backwards
Hong Kong aims to become a regional cryptocurrency hub by introducing a regulatory framework in June. However, this framework is very restrictive, with the listed tokens needing background checks for issuers and developers.
Licensed cryptocurrency exchanges will also be banned from market making activities and will require insurance to cover any potential risks.
Moreover, the Hong Kong Security and Futures Commission said this week that DeFi projects must be fully regulated.
Meanwhile, across the pond in the US, there is still no sign of any formal cryptocurrency regulations, only growing disdain for the fledgling industry.
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