In a major leap, ZA Bank, Hong Kong’s leading virtual bank, has become the first digital-only bank to receive approval from the Securities and Futures Commission (SFC) for Type 1 regulated activity, allowing it to offer cryptocurrency trading services. This move positions ZA Bank as a key player in Hong Kong’s rapidly growing crypto market, following the city’s efforts to tighten regulations on unlicensed exchanges.
A Year of Preparation Pays Off
According to the local reports, the approval comes after months of preparation, with the bank now leveraging Hong Kong’s new crypto regulations that were implemented in June 2023.
ZA Bank’s CEO, Rockson Hsu, described the approval as a “game-changing” milestone for the bank, which plans to expand into virtual asset services and launch an investment fund service. This comes as Hong Kong intensifies its push to become a global crypto hub, aiming to attract digital asset firms through a comprehensive regulatory framework that includes mandatory licensing for exchanges by February 2024.
Hong Kong’s strict approach has created an environment where licensed platforms like ZA Bank can thrive, providing secure, regulated services to crypto traders. This approval is also part of broader efforts by the city’s regulators to legitimize the crypto industry, with previous approvals of Bitcoin and Ether exchange-traded funds (ETFs) further boosting the market’s credibility.
What Next?
ZA Bank’s next move will be to launch its investment fund service, aligning with Hong Kong’s broader goals to support Web3 startups and attract global crypto investors. As competition with crypto hubs like Singapore and Dubai heats up, this bold step could turn Hong Kong into a powerhouse in the digital finance world! Buckle up, the future of crypto in Hong Kong just got real!
