Hong Kong Virtual Bank Set to Offer Seamless Crypto Conversions and Accounts, According to Reports

Hong Kong Virtual Bank Set to Offer Seamless Crypto Conversions and Accounts, According to Reports

Crypto companies in the US are struggling to find domestic banking partners, and now they are searching for overseas services. ZA Bank, the top virtual bank in Hong Kong by assets, has stepped up to provide crypto account services and assistance with crypto-to-fiat exchanges. 

About the Report

According to a recent report on April 12, the bank will function as a settlement bank, allowing token deposits at licensed exchanges to be withdrawn in Hong Kong dollars, Chinese yuan, and US dollars. Furthermore, ZA Bank is expanding its account services to include crypto companies.

The financial records of cryptocurrency firms in the vicinity are a product of a trial run carried out in a regulatory sandbox that saw the participation of about a hundred companies. Nonetheless, Ronald Iu, the CEO of ZA Bank, has stated that individuals from mainland China will not be able to access the service due to the country’s restrictions. 

Lu went on to mention that at present, only two authorized crypto exchanges in Hong Kong, HashKey and OSL, are facilitating currency conversions. He assured that ZA Bank will extend the same service to other exchanges once they obtain their license. 

As cryptocurrency firms in the United States grapple with the challenge of securing banking partnerships, ZA Bank, a Hong Kong-based financial institution, has emerged as a potential solution. This development follows the decline of crypto-friendly banks such as Silicon Valley Bank, Silvergate Bank, and Signature Bank. 

Significance of ZA’s Move

ZA Bank’s move comes at a time when Hong Kong regulators are making a concerted effort to establish the region as a crypto hub.

Numerous experts within the cryptocurrency community hold the belief that Hong Kong’s approach, which differs significantly from the adversarial stance taken by US regulators, will enhance its prospects of success.

 According to reports, even state-owned Chinese banks have expressed interest in offering banking services to crypto firms in the city, or at least making inquiries with them.