ZA Bank, based in Hong Kong, has announced its plans to offer retail virtual asset trading in the region. The bank revealed its intentions shortly after the Hong Kong Securities and Futures Commission (SFC) declared its acceptance of license applications for retail virtual asset trading platforms. In order to obtain regulatory approvals, ZA Bank will collaborate with locally licensed virtual asset exchanges, as stated in their announcement. Once the necessary approvals are secured, the bank’s customers will be able to trade virtual assets using fiat currency through the ZA Bank App.
ZA Bank floats its virtual asset trading platform
This move towards virtual asset trading is part of ZA Bank’s broader strategy, which also includes plans to facilitate trading in United States stocks in the future. The SFC’s decision to accept license applications for retail virtual asset trading platforms was accompanied by the implementation of new guidelines, effective from June, which focus on asset custody safety requirements, cybersecurity standards, and the segregation of client assets, among other aspects. Currently, most virtual asset trading platforms accessible to the public in Hong Kong are not regulated by the SFC.
During the consultation period for the new licensing procedure, it received significant attention, with 152 comments submitted. Furthermore, a subsidiary of the Chinese state-owned Greenland company has also applied for a virtual asset trading license in Hong Kong, highlighting the growing interest in this sector. ZA Bank, Hong Kong’s largest digital bank and controlled by Chinese internet insurer ZhongAn Online P&C Insurance, expressed its commitment to supporting the Hong Kong SAR government’s vision of developing a vibrant sector and ecosystem for virtual assets.
Hong Kong commits to strengthening its virtual asset regulation
Hong Kong’s prominence in the virtual asset space is further evident through the launch of the Hong Kong Monetary Authority’s digital Hong Kong dollar pilot project, in which ZA Bank is participating. Additionally, the emergence of tech accelerators and incubators in the region further solidifies Hong Kong’s growing presence in the virtual asset industry.
Earlier reports in April indicated that ZA Bank was preparing to serve as a settlement bank for token withdrawals from licensed exchanges in Hong Kong dollars, Chinese yuan, and U.S. dollars. As ZA Bank moves forward with its plans for retail virtual asset trading, it aligns with Hong Kong’s evolving regulatory framework, aiming to provide a secure and thriving environment for investors in the virtual asset market.
