ZA Bank is Hong Kong’s first digital-only bank after gaining a Securities and Futures Commission license for Type 1 regulated business.
A ZA Bank representative reportedly told the Hong Kong news portal HKEJ on September 30 that the bank has been permitted by the China Securities Regulatory Commission to amend its Type 1 license to include additional requirements for virtual asset transactions.
This announcement comes after the bank worked for a year to create a regulated cryptocurrency ecosystem and strengthen regulations on unlicensed exchanges after Hong Kong financial regulators tightened their grip.
The bank intends to launch an investment fund service and follow the cryptocurrency guidelines established by the nation’s banking authorities.
Two years after the bank’s official launch, CEO of ZA Bank Rockson Hsu said in a press release that the company is still dedicated to changing the banking industry “game changer.”
He also outlined the bank’s intention to introduce a solution for investment funds. Hsu said:
We look forward to further enhancing users’ experience with our game-changing investment fund services!”
Hong Kong introduced new regulations in 2022, requiring all crypto exchanges operating in the city to submit license applications by February 2024.
More than 24 businesses have since had difficulty obtaining licenses. About 12 applications, including those from Bybit, Huobi HK, and OKX, had been withdrawn by August 2024.
The SFC advised investors to use licensed platforms in May 2024 exclusively. The nation’s laws about cryptocurrencies went into force in June 2023.
After the Hong Kong Monetary Authority released a list of businesses accepted for its stablecoin sandbox program, ZA Bank started providing banking services to stablecoin issuers on July 18, 2024.
One of the first businesses registered by the HKMA, RD InnoTech, and ZA Bank cooperated for sandbox experiments, according to a news release issued on July 18. ZA Bank added about 10 more stablecoin customers at that point.
