Hong Kong’s ZA Bank To Serve as Settlement Bank for Crypto Firms

• ZA bank now supports both fiat and cryptocurrency transactions.
• Hong Kong aims to introduce a new framework for digital asset exchanges on June 1.

There have been no big setbacks to Hong Kong’s crypto push, so far. All of the predicted growth in the digital asset market seems to be materializing. ZA Bank, Hong Kong’s biggest virtual bank, now supports both fiat and cryptocurrency transactions and provides account services to the city’s burgeoning digital asset market.

A recent report claims that ZA would enable withdrawals in both Hong Kong dollars and U.S. dollars for its customers. They will do this after putting their crypto assets onto trading platforms. As a result, ZA will act as the settlement bank.

After a successful trial in a “regulatory sandbox,” whereby one hundred businesses were onboarded, ZA Bank is now offering online account openings to local Web startups and SMEs. Devon Sin, ZA’s alternate CEO, claims that the bank has a live connection to the city’s corporation registry data, which facilitates basic data input and cross-referencing.

Working in Tandem With Regulations

It’s worth noting that Chinese tycoon Ou Yaping and a few others established ZA Bank in March 2020.  It is also considered to be among Hong Kong’s biggest virtual banking institutions.

Hong Kong aims to introduce a new framework for digital asset exchanges on June 1 in order to better serve ordinary investors. Until these regulations go into force, ZA Bank plans to collaborate with legitimate institutions. The bank has started conducting AML audits based on defined criteria. Sin claims that there have been no AML incidents at work recently.

There will also be a gathering for crypto players and bankers later this month, hosted by the city’s banking and securities officials. This will allow the regulator to learn about the organizations’ opinions and experiences.