ZA Bank, Hong Kong’s prominent digital bank, has initiated a sandbox trial for its crypto trading service, aiming to create a regulated platform for retail investors interested in virtual asset trading.
In a press release dated October 29, ZA Bank announced the launch of this pilot program, which is designed for select retail customers. The trial comes in response to increasing interest in cryptocurrencies among Hong Kong residents. A recent survey by the Hong Kong Investment Funds Association revealed that 75% of retail investors are keen on trading crypto.
Upon successful completion of the pilot, ZA Bank intends to fully integrate the crypto trading service into its banking app, thereby providing retail users with more direct access to the global crypto market, which currently boasts a market capitalization exceeding $2 trillion.
Ronald Iu, the chief executive officer of ZA Bank, stated, “The wave of favorable policies and good news from the Hong Kong government and the industry during FinTech Week will inject new momentum into the local fintech ecosystem.”
While the bank has not disclosed a specific timeline for the full launch of the crypto trading service, it is strategically positioning itself to leverage Hong Kong’s evolving regulatory framework for cryptocurrencies. This initiative is expected to attract users who are interested in virtual assets within a bank-regulated environment.
In September, ZA Bank received approval from the China Securities Regulatory Commission to add new conditions for virtual asset transactions to its Type 1 license, becoming the first digital-only bank in Hong Kong to obtain a license from the Securities and Futures Commission for regulated activity.
In 2022, Hong Kong introduced new regulations requiring all crypto exchanges operating in the city to submit license applications by February 2024. Since the announcement, over 24 companies have struggled to obtain licenses, with approximately 12 applications, including those from Bybit, Huobi HK, and OKX, being withdrawn as of August 2024.
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