Hong Kong’s largest digital bank launches retail crypto business

Hong Kong's largest virtual bank Za Bank has launched a new service that allows retail users to buy and sell Bitcoin and Ethereum using fiat.

According to the bank's statement on November 25, Hong Kong residents will need to have an account with the bank and undergo a risk assessment before using the new crypto service linked to the bank's app.

Users can buy Ether (ETH) and Bitcoin (BTC) only through ZA Bank. Other cryptocurrencies are not mentioned.

Za Bank's interim CEO, Calvin Ng, said the service was launched in partnership with cryptocurrency exchange HashKey to meet regulatory requirements and integrate traditional banking with crypto.

“The rise of cryptocurrency offers investors more diversified asset allocation opportunities,” he said.

HashKey Exchange CEO Livio Weng said the exchange will continue to work “closely with ZA Bank to promote the development of the Web3 ecosystem” and “provide a variety of financial services to our users.”

ZA Bank launched a sandbox test for its virtual property trading service in October.

Related: Hong Kong warns against misrepresenting crypto firms as ‘banks'

Retail crypto trading in Hong Kong only began in August 2023, with only three exchanges licensed by Hong Kong's financial regulator, the Securities Futures Commission (SFC).

Crypto exchanges OSL and HashKey will be licensed in 2020 and 2022 respectively. The Hong Kong Virtual Asset Exchange (HKVAX) became the third in October.

The SFC has indicated that additional licenses for crypto exchanges and digital asset firms operating in the region may be approved by the end of the year.

That bank Licensed by the Hong Kong Monetary Authority in 2019, it became Hong Kong's first and largest digital bank. ZA Bank has over 800,000 users. HashKey was established in 2018.

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