ZA Bank, Hong Kong’s leading virtual bank, has introduced a new feature enabling retail customers to buy and sell Bitcoin and Ethereum directly using fiat currency.
In a statement on November 25, the bank announced that Hong Kong residents must hold a ZA Bank account and complete a risk assessment to access this crypto service through the bank’s app. Currently, the service supports only Bitcoin and Ethereum, with no mention of other cryptocurrencies.
Calvin Ng, ZA Bank’s alternate chief executive, explained that the service was developed in collaboration with the cryptocurrency exchange HashKey to ensure compliance with regulations and bridge the gap between traditional banking and crypto.
Ng highlighted that the growth of cryptocurrency provides investors with broader options for asset diversification. Meanwhile, Livio Weng, CEO of HashKey Exchange, emphasized their commitment to working closely with ZA Bank to advance the Web3 ecosystem and deliver a wider range of financial services to users.
ZA Bank had previously tested its virtual asset trading service in a sandbox environment in October.
Retail cryptocurrency trading only became available in Hong Kong in August 2023, with only three exchanges currently approved by the Securities and Futures Commission (SFC), the region’s financial regulator.
OSL and HashKey were granted licenses in 2020 and 2022, respectively, while the Hong Kong Virtual Asset Exchange (HKVAX) became the third licensed exchange in October 2023.
The SFC has indicated that additional licenses for crypto exchanges and digital asset companies in the region are expected to be issued before the end of the year.
ZA Bank, Hong Kong’s first and largest digital bank, received its license from the Hong Kong Monetary Authority in 2019 and now serves over 800,000 users. HashKey, established in 2018, continues to play a significant role in the region’s digital asset ecosystem.
