The announcement of digital asset trading in the administrative region was made on 24th May. This announcement came after the announcement made by the Security and Futures Commission (SFC). It says they would start taking the retail virtual asset trading platform license applications.
The local licensed virtual asset exchanges will partner with the ZA bank. And will help to obtain the regulatory approvals. Once approvals are placed on the bank, customers can trade virtual assets using fiat currency within the ZA Bank App.
ZA Bank Supports SAR Governments Vision
ZA Bank is the no.1 virtual bank in Hong Kong. Small and medium-sized enterprises are offered innovative banking by it. ZhongAn Technologies International Group Limited set it up.
The bank is set to support the Hong Kong SAR government’s vision. Despite the challenging economic recovery, its robust attitude towards developing the virtual sector and ecosystem is the reason behind the ZA banks plan. The other reason is the growing demand for virtual assets in the city.
The bank is bringing the plan to provide trade with virtual assets by using the fiat currency. This will be made possible by the ZA bank app. The bank is also interested in trading in the United States Stocks.
This will empower ZA Bank’s position as an innovative wealth management platform that serves and satisfies the emerging needs of the users. Since it is a licensed bank, it will stick to the highest customer security and regulatory compliance stand.
SFC Declared The Guidelines For Digital Assets Trading
The opening of the application process is announced. The SFC also declared the guidelines for asset custody, safety, cybersecurity standards, and the segregation of client assets.
These guidelines will come into effect in June. In Hong Kong, most virtual asset trading platforms accessible to the public are not regulated by SFC.
SFC oversees the regulations governing takeovers and mergers of public companies.
This announcement of a new licensing procedure gained a tremendous amount of attention. Greenland has also applied for a virtual asset trading license in Hong Kong.
ZA is the most prominent digital bank in Hong Kong. ZhongAn Online P&C Insurance controls it. It is a Chinese Internet insurer.
They declare their plans as ZA Bank is set to support the Hong Kong Special Administrative Region (SAR). By this, they open up their point of view to support their perception of developing the supporting sector and environment for virtual assets.
The launch sees Hong Kong’s progress and efforts in the virtual asset space of a pilot project. ZA is also participating in this project as a setup and tech accelerator. In April, ZA Bank reportedly prepared to act as a settlement bank.
Digital Asset will settle the withdrawals of tokens from licensed exchanges in Hong Kong dollars, Chinese Yuan, and U.S. dollars. After acquiring the necessary regulatory compliance, ZA Bank will closely work with suitable stakeholders. In this way, it will implement appropriate safeguards to ensure the safety and integrity of its service.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/05/25/hong-kongs-za-bank-seeks-digital-asset-retail-trading-offering/