Key Takeaways
- ZA Bank achieved another milestone as Asia’s first bank to offer cryptocurrency services directly to users.
- ZA Bank partnered with Hashkey Exchange to ensure regulatory compliance.
- The collaboration aims to develop a Web3 ecosystem that delivers more diversified financial services to users.
- Hong Kong’s new policy is trying to position itself as a regional hub for crypto space.
- ZA Bank got approval from the China Securities and Regulatory Commission. ZA bank became the first Hong Kong digital-only bank to gain this license.
- In 2022 Hong Kong introduced mandatory licensing of crypto exchanges. The license required compliance by February 2024.
- Major players such as Bybit, Huobi HK, and OKX applied for this license but nearly half of them withdrew their applications by August.
ZA Bank is Hong Kong’s first and largest digital bank. It has achieved another milestone as Asia’s first bank to offer cryptocurrency services directly to users. ZA bank introduced crypto trading services for its retail customers. Retail users can trade Bitcoin and Ethereum in Hong Kong dollars and US dollars.
ZA bank released a press release on November 25 stating that a survey conducted by the Hong Kong Association of Banks found that nearly 70 % of the participants see bank-backed crypto services as a way to simplify transactions and boost adoption. The users can start trading on cryptocurrencies with a minimum deposit of $70.Initially, for three months the users benefit from 0% commission charges on transactions.
ZA Bank partnered with Hashkey Exchange to ensure regulatory compliance.HashKey Exchange is a licensed Hong Kong-based crypto platform. Hong Kong’s new policy is trying to position itself as a regional hub for crypto space.
The growth of the industry in the global market is the reason behind this policy. According to the estimates, the number of users trading on crypto will exceed 560 million by mid-2024. The bank also provides funds and US stocks to its users. HashKey Exchange provides users with fully compliant and secure digital asset trading solutions.
The collaboration of Hash Key Exchange with ZA Bank is beyond the technical synergies. The collaboration also ensures the shared commitment to upholding the highest regulatory standards. The collaboration also aims to develop a Web3 ecosystem that delivers more diversified financial services to users.
ZA Bank was approved by the China Securities and Regulatory Commission to permit the companies to add new conditions for virtual asset transactions to their type 1 license. Type 1 regulatory activity license was presented to ZA bank.ZA bank became the first Hong Kong digital-only bank to gain this license.
In 2022 Hong Kong introduced mandatory licensing of crypto exchanges. The license required compliance by February 2024. More than 24 companies applied for this license but nearly half of them withdrew their applications by August. The companies that withdrew their applications include major players such as Bybit, Huobi HK, and OKX. The companies highlighted the challenges in navigating the city’s regulatory landscape.
The emerging adoption of cryptocurrencies by traditional financial institutions can be a major milestone for both parties. The introduction of Bitcoin and Ethereum through bank applications contributes to a user-friendly interface. As banks prioritize security, trading can be done at ease and risk-free. This is a major step towards the digital banking service and advanced innovation.
ZA, being a reputed bank in Hong Kong the listing signifies the emerging acceptance and utility of crypto investments. However, investments of any kind should be considered after careful evaluation. The crypto landscape and its volatile nature should be kept in mind before involving in any cryptocurrency-related transaction or investment.
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