Hong Kong’s ZA Bank Gets Regulatory Nod to Add Crypto to Its Financial Services

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Hong Kong’s ZA Bank Gets Regulatory Nod to Add Crypto to Its Financial Services

ZA Bank, an online financial services company licensed by the Hong Kong Monetary Authority (HKMA), has received regulatory approval to add crypto investment services to its business offerings.

On Monday, September 30, the company announced that it had become the first local virtual bank to obtain a Type 1 license from the Securities and Futures Commission (SFC), allowing it to deal in securities, including cryptocurrencies.

A New Chapter in Crypto Services

The approval follows a 12-month wait following the introduction of Hong Kong’s new licensing regime, which took effect in June 2023 requiring all unlicensed crypto firms to exit the market by February 2024.

With the license now secured, ZA Bank is set to roll out user-friendly crypto investment services. The initial focus will be on offering a fresh investment experience, with a variety of compliant products slated to launch in the coming months, aligning with local regulations

The bank prides itself on having one of the most comprehensive product portfolios among Hong Kong’s digital banks, offering 24/7 services that include deposits, loans, transfers, payments, and insurance.  In just two years of launch, the bank has amassed a total of 500,000 users exploring its product offerings.

“The obsession with user experience shows our determination to be the ‘Game Changer’ in the banking industry. Within just 2 years since our full launch, our dedication to innovative banking services has earned us the trust and support of more than 500,000 users[2]. We look forward to further enhancing users’ experience with our game-changing investment fund services,” said Rockson Hsu, CEO of ZA Bank.

A Record-Breaking Performance

In addition to the growing user base of 500,000, ZA Bank has also become the first digital-only bank in Hong Kong to report a record-breaking monthly profit this year in Hong Kong.

The company has been continuously working to improve its business to strengthen its standing within the crypto market. Earlier this year, the bank announced that it is in talks with several stablecoin issuers to offer reserve accounts for the upcoming launch of the Hong Kong stablecoin known as HKDA.

The bank will provide the necessary support for the digital asset to always maintain its value in the face of market turmoil. The company’s chief Devon Sin believes that stablecoins hold vast potential across wholesale and retail markets.

“Stablecoin use cases are very diverse, be it in wholesale or retail markets, tokenization, settlement for exchange trading, or to tackle overseas remittance pain points. We are keen to explore how to put them into real-world use with the potential issuers,” he said.

Financial authorities in Hong Kong started accepting applications from potential issuers to join its stablecoin sandbox in March 2024.

The authorities also recently concluded their consultation on the digital asset and are now gearing up to roll out another regulatory framework specifically designed for the issuance and usage of the stablecoins in Hong Kong.

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Hong Kong’s ZA Bank Gets Regulatory Nod to Add Crypto to Its Financial Services