Hong Kong's ZA Bank to offer retail traders crypto trading with fiat

Chinese virtual bank ZA Bank has revealed plans to offer crypto trading services with fiat currencies to retail customers.

In an interview with the Hong Kong Economic Journal, ZA Bank CEO Ronald Iu said the Hong Kong-based company eventually plans to start offering crypto trading services with fiat via its mobile application ZA Bank App, although he did not provide a timetable.

The ZA Bank CEO noted that the company is set to double down on web3, as the virtual bank has already provided commercial banking services to over 80 crypto firms, including OKX’s branch in Hong Kong. In addition to OKX, ZA Bank is also a banking partner for local licensed virtual asset trading platforms HashKey and OSL.

Since its inception in 2020, ZA Bank has undergone an expansion of its customer base, reaching a milestone where one in ten adults in Hong Kong now owns a ZA Card. Ronald Iu also said that as of the end of June, customer deposits have surpassed 10 billion yuan (~$1.4 billion), marking a 17% increase from the year-end in 2022.

In April, ZA Bank revealed its strategic initiative to position itself as a leading crypto bank, aligning with the needs of the web3 eco. In a public statement, the head of the bank reiterated ZA Bank’s commitment to crypto, emphasizing the need to focus an approach of the “integration of traditional banking services with the web3 world.”

Meanwhile, the Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority have issued a joint circular, acknowledging an increasing number of inquiries from entities interested in launching spot crypto exchange-traded funds (ETFs).

In a bid to draw more capital into the region, the SFC has expressed its readiness to accept applications for the authorization of ious funds with exposure to cryptocurrencies, encompassing spot crypto ETFs.