- May 27, 2023
- Posted by: [email protected]
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ZA Bank, a Hong Kong-based financial institution, has unveiled its plans to introduce retail virtual asset trading in the region as part of its diversification strategy. The announcement came on May 24, immediately following the release of new guidelines by the Hong Kong Securities and Futures Commission (SFC) indicating their acceptance of retail virtual asset trading platform license applications.
According to an official statement, ZA Bank intends to collaborate with locally licensed virtual asset exchanges to secure the necessary regulatory approvals. Once these approvals are obtained, the bank’s customers will be able to trade virtual assets using fiat currency within the ZA Bank App.
The bank highlighted that virtual asset trading is an important part of its overall strategy, which will eventually involve trading in US stocks. The SFC’s new guidelines, which will be implemented in June, cover various aspects such as asset custody safety requirements, cybersecurity standards, and the segregation of client assets. It is vital to highlight that the majority of Hong Kong’s publicly accessible virtual asset trading platforms are currently unregulated by the SFC.
The announcement of the licensing application process received significant attention during its consultation period, generating 152 comments. Additionally, a subsidiary of the Chinese state-owned Greenland company has also submitted an application for a virtual asset trading license in Hong Kong.
As Hong Kong aims to establish itself as a prominent player in the virtual asset sector, ZA Bank, the largest digital bank in the region controlled by Chinese internet insurer ZhongAn Online P&C Insurance, expressed its support for the government’s vision of developing a vibrant sector and ecosystem for virtual assets.
Hong Kong’s commitment to the virtual asset space is further evident in the launch of the Hong Kong Monetary Authority’s digital Hong Kong dollar pilot project, in which ZA Bank is actively participating. Additionally, the emergence of tech accelerators and incubators in the region highlights Hong Kong’s growing prominence in the industry.
It was reported in April that ZA Bank was preparing to function as a settlement bank for token withdrawals from approved exchanges, allowing transactions in Hong Kong dollars, Chinese yuan, and US dollars.
ZA Bank’s plans to introduce a retail virtual asset trading are consistent with its diversification strategy, reflecting Hong Kong’s ambition to foster a thriving virtual asset ecosystem and establish itself as a leader in the industry.
