According to an April 12 Bloomberg report, Hong Kong’s largest virtual bank, ZA Bank, is reportedly set to offer crypto account services and facilitate crypto-to-fiat exchanges. The move comes at a time when US-based crypto companies are struggling to find local banking partners and are looking abroad.
The bank plans to act as a settlement bank to allow token deposits at licensed exchanges to be withdrawn in Hong Kong dollars, Chinese yuan, and United States dollars. Additionally, ZA Bank will offer account services to local crypto firms following a successful trial in a regulatory sandbox that saw roughly 100 firms participate.
While currency conversions are currently being offered by the only two licensed crypto exchanges in Hong Kong, HashKey and OSL, ZA Bank plans to provide the same service at other exchanges once they become licensed.
This move by ZA Bank shows the growing interest in cryptocurrencies and the need for banking services for the crypto industry. While this may be a positive development for the crypto market, it’s important to keep in mind the potential risks and uncertainties associated with investing in cryptocurrencies.
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