Hong Kong-based ZA Bank has become the first digital neobank in the region to give retail customers access to crypto.
ZA Bank, Hong Kong‘s largest digital bank, has introduced crypto trading for retail customers, allowing users to trade Bitcoin (BTC) and Ethereum (ETH) in Hong Kong dollars and U.S. dollars.
In a press release on Nov. 25, the bank cited a Hong Kong Association of Banks survey that found nearly 70% of respondents see bank-backed crypto services as a way to simplify transactions and boost adoption. Users can start trading with a deposit of $70 and benefit from 0% commission during the first three months.
Users can start trading with a minimum deposit of $70, with zero commission offered for the first three months, according to the bank. ZA Bank has partnered with HashKey Exchange, a licensed Hong Kong-based crypto platform, to ensure regulatory compliance.
The launch aligns with Hong Kong’s push to position itself as a regional hub for the crypto space as the industry sees significant global growth, with user numbers exceeding 560 million by mid-2024, according to industry estimates. Beyond cryptocurrency trading, the bank provides access to funds and U.S. stocks.
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 mandatory licensing for crypto exchanges in 2022, requiring compliance by February 2024. While over 24 companies have applied, nearly half withdrew applications by August, including major players like Bybit, Huobi HK, and OKX, highlighting challenges in navigating the city’s regulatory landscape.
Read the full article here