- Licensed crypto exchanges may withdraw HKD, RMB, or USD.
- Hong Kong wants crypto money.
The largest virtual bank in Hong Kong is expanding its services to include both crypto and fiat currency transactions, as well as the provision of account services for the flourishing digital asset industry in the city.
ZA banks Starting Withdrawal in Multiple Currencies
ZA Bank has announced that it would provide digital asset companies in the city with banking services as well as make it possible for consumers to trade cryptocurrencies for fiat money. This action represents a crucial step towards the adoption of crypto on a wider scale in the town, which has been working to establish itself as a key player in the Web3 domain.
In an interview on Tuesday, Ronald Iu, the chief executive officer of the lender, said that the bank would allow token-to-fiat currency conversions on approved exchanges. ZA Bank was founded by a number of individuals, including the Chinese billionaire Ou Yaping. After customers deposit cryptocurrency tokens with exchanges, ZA will serve as a settlement bank for those customers, allowing currency withdrawals in Hong Kong, China, and the United States, according to Iu.
According to Iu, “having a way to make things work is of the utmost importance to the dozen of interested firms, regardless of how large or small they are or where in the world they are located.” The chief executive officer also said that ZA Bank will provide the same service to other cryptocurrency platforms in the city as soon as they were granted licenses.
According to Iu, the business model is already being used by HashKey and OSL, which are the only two cryptocurrency exchanges in Hong Kong that are now licensed. Additionally, ZA Bank will provide the same service to other exchanges as soon as they are granted appropriate licensing.
HongKong Against the Wave
As part of its efforts to regain its position as a global financial hub after many years of being hampered by Covid regulations and experiencing political turmoil, Hong Kong is going against the grain by opening its doors to the troubled industry.
However, the city’s objectives have been severely hampered by a lack of access to financial services. Later on this month, the city’s banking and securities authorities will hold a roundtable discussion for crypto players and bankers to discuss financial services and share their insights, experiences, and viewpoints with one another.
Beginning on June 1st, Hong Kong is going to implement a revised framework for virtual asset exchanges. This framework will let exchange operators to open their doors to retail investors.
HongKong Boosts its Web3 Work
In order to solidify its position as a center for digital innovation in Asia, Hong Kong has been working very hard to advance its Web3 and blockchain initiatives. In order to entice an even greater number of cryptocurrency enterprises, the city has even shifted toward a more business-friendly regulatory framework.
In January, the Securities and Futures Commission (SFC) in Hong Kong released a consultation document outlining its proposed regulatory framework for cryptocurrency trading platforms. This regime was outlined in the report. The new regulations are scheduled to take effect beginning in June and stipulate that any cryptocurrency platform must get a license from the SFC.
Retail investors in the city would be able to trade certain “large-cap tokens” on regulated exchanges if the new regulatory system is put into place.
The city’s regulatory climate is improving, which has contributed to an increase in the number of investors interested in purchasing digital assets. According to recent reports, investors in Hong Kong have established a new fund with a target size of one hundred million dollars called ProDigital Future. This fund will provide financial assistance to startups in the crypto and Web3 industries.