ZA Bank, Hong Kong’s digital bank, has launched a sandbox trial of its crypto trading service, aiming to provide retail investors with a regulated platform for virtual asset trading.
Hong Kong-based virtual bank ZA Bank has launched a sandbox trial for its new virtual asset trading service for select retail customers.
In a press release on Tuesday, Oct. 29, ZA Bank said that its trial initiative seeks to meet growing demand in Hong Kong, where a recent survey by the Hong Kong Investment Funds Association revealed that 75% of retail investors are interested in trading crypto.
Upon completion of the pilot, ZA Bank plans to prepare for a full launch through its banking app, offering retail users more direct access to the global crypto market, which currently exceeds a market capitalization of $2 trillion.
“The wave of favorable policies and good news from the Hong Kong government and the industry during the FinTech Week will inject new momentum into the local fintech ecosystem.”
Ronald Iu, ZA Bank chief executive officer
Although no timeline was provided for the crypto trading service launch, the bank appears to be positioning itself to capitalize on Hong Kong’s new regulatory framework for crypto, hoping to attract users interested in virtual assets in a bank-regulated setting.
In late September, the bank received approval from the China Securities Regulatory Commission to allow the company to add new conditions for virtual asset transactions to its Type 1 license, becoming the first Hong Kong digital-only bank to gain a license from the Securities and Futures Commission for Type 1 regulated activity.
Hong Kong introduced new regulations in 2022, requiring all crypto exchanges operating in the city to submit license applications by February 2024. Since then, over 24 companies struggled to get licenses. By Aug. 2024, around 12 applications have been withdrawn, including those from Bybit, Huobi HK, and OKX.
Source: https://crypto.news/hong-kongs-za-bank-begins-sandbox-pilot-of-crypto-trading-service/