Hong Kong’s leading digital bank, ZA Bank, has been given the green light by the China Securities Regulatory Commission (CSRC) to expand its virtual asset services. The new approval enables the bank to include virtual asset services in its Type 1 license, which is essential for the bank as it expands its operations in the regulated cryptocurrency environment.
Stricter Crypto Regulations
The change is significant given that Hong Kong has made conditions for unlicensed exchanges more stringent over the last one year. These new rules are among the measures the region implements to strengthen and improve the cryptocurrency market security. ZA Bank will also offer investment fund services connected with virtual assets, which fits into the overall process of forming the financial regulation in the country.
In a statement, Rockson Hsu, ZA Bank’s CEO, confirmed the bank’s focus on innovation. Hsu said ZA Bank wants to be a ‘disruptor’ in the banking industry. Two years after the official launch, the bank is extending its operations, and the emphasis will be on virtual assets. The investment fund service would help meet clients’ increasing needs in the area of secure crypto asset solutions.
New Licensing Requirements
The financial regulators of Hong Kong have enhanced the rulebook for cryptocurrency exchanges. All crypto exchanges and service providers will have until February 2024 to obtain licenses. This change has meant that many firms are in new and often difficult regulatory environments. 12 companies, including Bybit, Huobi HK, OKX, and other giants, have withdrawn their applications until August 2024.
Hong Kong Enhances OTC Crypto Regulation and Oversight
In May 2024, the Securities and Futures Commission (SFC) again advised the public to only trade on licensed platforms. These rules, which kicked off in June 2023, are part of Hong Kong’s efforts to strengthen and properly regulate the crypto market.
The bank’s attempts to meet the requirements set by Hong Kong regulators make it a leading company in the region’s crypto market. With the recent launch of its new digital banking services, ZA Bank is well-positioned to become a leading player in Hong Kong’s digital finance future.
