The Largest Virtual Bank in Hong Kong Offers Crypto to Fiat Services

The Largest Virtual Bank in Hong Kong Offers Crypto to Fiat Services

The largest virtual bank in Hong Kong, ZA Bank, plans to expand its business into the growing digital asset sector. The banking platform will offer crypto-to-fiat conversions and account services as the Chinese financial center seeks to enter the industry.

Bank-to-Service Licensed Crypto Exchanges

Bloomberg reports that the largest virtual bank in Hong Kong, co-founded by Chinese billionaire Ou Yaping, is planning to offer digital and fiat currency conversion for users in the city’s developing crypto sector.

The CEO of ZA Bank, Ronald Iu, has announced that it will offer crypto-to-fiat currency conversions through licensed exchanges, acting as a settlement bank for clients depositing digital coins in the trading platforms and wanting to withdraw Hong Kong dollars, US dollars, or Chinese yuan. Iu added:

"For the dozen interested firms, big or small, from abroad and locally, the top of their concern is to have a path to make things work."

ZA Bank is already working with the two authorized crypto exchanges in Hong Kong, Hashkey and OSL. It intends to provide its services to others as more platforms obtain a license to operate in China’s special administrative region.

In a post-pandemic world, Hong Kong has been opening up to the crypto space, despite its recent troubles. The city is seeking to revive its status as a global financial center, and a crypto hub.

There are reasons to believe that Hong Kong’s push into the crypto market has the support of Beijing, despite the crackdown on crypto activities on the mainland. A report revealed in late March that state-owned Chinese banks are ready to serve crypto companies in the city. One of China’s largest insurers backed the launch of two crypto-focused funds in early April.

Hong Kong authorities are now working to revamp the legal framework for cryptocurrency exchanges to allow them to open to retail investors. The financial regulators are also taking steps to improve access to banking services for crypto companies.

Online Accounts for Web3 Startups

ZA Bank plans to engage only with licensed digital asset exchanges. The anti-money laundering (AML) checks comply with existing requirements, and there have been no AML issues over the past months, according to its Alternate Chief Executive Officer, Devon Sin.

The virtual bank is also opening online accounts for Web3 startups and other small and medium enterprises. A report details how around 100 such companies have access to its services following a trial in a regulatory sandbox.

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