Hong Kong-based virtual bank ZA Bank has announced plans to eventually offer retail customers the ability to trade cryptocurrencies paired against fiat currencies through its mobile application. This was revealed by ZA Bank CEO Ronald Iu in a recent interview, however, he did not provide an exact timeline for when the crypto trading services would launch.
Iu explained that the bank aims to double down on its involvement with the web3 space. ZA Bank already provides banking services to over 80 crypto companies in Hong Kong, including major exchange OKX’s local branch. It also banks other licensed virtual asset platforms such as HashKey and OSL.
Since its launch in 2020, ZA Bank has rapidly grown its customer base. It now boasts that one in ten adults in Hong Kong has a ZA Bank account. As of the end of June 2022, the bank had over 10 billion yuan (~$1.4 billion) in customer deposits, representing a 17% increase compared to the end of 2021.
In April, ZA Bank announced a strategic plan to position itself as a leading crypto bank in alignment with the web3 ecosystem. The bank’s CEO reiterated their commitment to integrating traditional banking services with the needs of the cryptocurrency industry.
At the same time, Hong Kong’s financial regulators have signaled openness to approving spot cryptocurrency exchange-traded funds (ETFs). The Securities and Futures Commission and Hong Kong Monetary Authority issued a joint circular acknowledging growing interest in launching spot crypto ETFs in the region. They aim to attract more digital asset businesses to Hong Kong through regulatory approval of new crypto investment funds.
