ZA Bank, Hong Kong’s first digital-only bank, gets crypto approval, which means it can perform more regulated services.
ZA Bank, an online financial services company licensed by the Hong Kong Monetary Authority (HKMA), has been granted regulatory approval to incorporate crypto investment services into its business offerings.
On Monday, September 30, the company announced that it had become the first local virtual bank to receive a Type 1 license from the Securities and Futures Commission (SFC). This license enables the company to engage in the trading of securities, including cryptocurrencies.
New Chapter in Crypto Services
The approval was granted after a 12-month delay due to the implementation of Hong Kong’s new licensing regime in June 2023. This regime mandated that all unlicensed crypto firms exit the market by February 2024.
ZA Bank is prepared to introduce user-friendly crypto investment services now that the license has been obtained. The primary objective will be to provide a novel investment experience, with a diverse selection of compliant products scheduled to be released shortly by local regulations.
The bank is proud to offer a product portfolio that is among the most comprehensive among Hong Kong’s digital banks, providing 24/7 services that include deposits, loans, transfers, payments, and insurance. In the two years since its inception, the bank has attracted 500,000 users who have investigated its product offerings.
“Our dedication to being the “Game Changer” in the banking industry is evident in our obsession with user experience.” Our commitment to providing innovative banking services has garnered the trust and support of over 500,000 users in the two years since our full launch[2]. “We are eager to continue improving the user experience with our game-changing investment fund services,” stated Rockson Hsu, CEO of ZA Bank.
Record-Breaking Performance
In addition to its expanding user base of 500,000, ZA Bank has achieved a record-breaking monthly profit this year, making it the first digital-only bank in Hong Kong.
The organization has been diligently striving to enhance its operations to fortify its position in the cryptocurrency market. The bank announced earlier this year that it is in discussions with numerous stablecoin issuers to provide reserve accounts for the upcoming launch of the Hong Kong stablecoin, HKDA.
In the event of market turmoil, the bank will ensure that the digital asset maintains its value by providing the requisite support. Devon Sin, the company’s CEO, is confident that stablecoins have significant potential in the wholesale and retail sectors.
“Stablecoin is employed in various applications, including wholesale and retail markets, tokenization, exchange trading settlement, and resolving overseas remittance pain points.” He expressed his enthusiasm for investigating the potential issuers’ interest in implementing them in the real world.
In March 2024, the financial authorities of Hong Kong began accepting applications from potential issuers to participate in its stablecoin sandbox.
The authorities have recently completed their consultation on digital assets and are currently in the process of implementing a new regulatory framework that is specifically tailored to the issuance and usage of stablecoins in Hong Kong.
