Nikolas Sargeant
ZA Bank, Hong Kong's pioneering digital bank, has expanded its services to include retail cryptocurrency trading, enabling customers to directly purchase Bitcoin and Ethereum using fiat currency. The announcement marks a significant milestone in Hong Kong's growing cryptocurrency ecosystem.
New Service Integration and Requirements
The bank's November 25 announcement outlined that Hong Kong residents must meet specific criteria to access the crypto trading service. Users need to maintain an active ZA Bank account and successfully complete a mandatory risk assessment. The service, integrated within the bank's existing mobile application, currently limits trading to Bitcoin and Ethereum.
Strategic Partnership and Regulatory Compliance
The launch stems from a strategic partnership with HashKey, a licensed cryptocurrency exchange. Calvin Ng, ZA Bank's alternate chief executive, emphasized that this collaboration ensures regulatory compliance while advancing the integration of traditional banking with digital assets. "The rise of cryptocurrency presents investors with more diverse asset allocation opportunities," Ng stated.
HashKey Exchange CEO Livio Weng expressed commitment to further collaboration, noting their focus on developing the Web3 ecosystem and expanding financial services offerings. This partnership follows ZA Bank's successful sandbox trial of its virtual asset trading service in October.
Hong Kong's Evolving Crypto Landscape
The initiative aligns with Hong Kong's broader embrace of retail crypto trading, which officially began in August 2023. Currently, only three exchanges hold licenses from the Securities Futures Commission (SFC): OSL, HashKey, and the recently approved Hong Kong Virtual Asset Exchange (HKVAX).
The SFC has indicated that additional licenses for crypto exchanges and digital asset firms may be approved by year-end, suggesting continued growth in the region's cryptocurrency sector.
ZA Bank, licensed by the Hong Kong Monetary Authority in 2019, has established itself as Hong Kong's first and largest digital bank, serving over 800,000 users. Their partner HashKey, founded in 2018, represents one of the territory's earliest regulated crypto institutions.
