Biggest Digital Bank In Hong Kong, Extends Services To Crypto Assets

Hong Kong digital banks open crypto services. (Photo; Doc. Behorizon)

JAKARTA - ZA Bank, the largest digital bank in Hong Kong, announced its plan to expand its services to the crypto asset market. The bank will offer users of crypto exchanges licensed in Hong Kong the facility to enter and exit the crypto market using Hong Kong dollars, Chinese yuan, or US dollars, as reported by Bloomberg.

ZA Bank itself has become the first digital bank to operate in Hong Kong since March 2020, when the global COVID-19 pandemic began to hit. This bank is owned by the ZA Group which was founded by Ou Yaping, a billionaire from China.

ZA Bank's decision to serve crypto investors and traders comes as some have suggested that digital assets may have contributed to the problems faced by Silicon Valley Bank and Signature. A number of major crypto exchanges have also had difficulty finding banking partners after these institutions failed.

In an effort to address these concerns, regulators in Hong Kong plan to hold a forum with domestic and international crypto firms later this month. This was done in an effort to reaffirm Hong Kong's identity as a strong crypto center.

Launching Blockworks, Hong Kong is also trying to gain an economic advantage after the pandemic and the effect of the decline in the financial sector in the country.

Ronald Iu, CEO of ZA Bank, revealed that companies focused on digital assets, both big and small, are excited to have a clear path to be able to "make things work," as reported in the report.

Not only that, but ZA Bank also plans to offer online accounts for medium to small-scale Web3 startups in the country. This step was taken after a successful sandbox trial involving 100 companies.

Earlier this month, the head of Hong Kong's financial sector stated that although the digital asset market is still facing volatility and hesitation, the time has come for the economy to embrace the Web3 concept.

Conversations between local crypto market players and the Hong Kong Monetary Authority, as well as the Securities and Futures Commission, are scheduled for April 26. The aim is to "facilitate direct dialogue" and "share experience and practical insights on opening and maintaining bank accounts."