By
Bena Ilyas
April 5th, 2024
ZA Bank is also looking to offer services to Web3 crypto startups, a sector widely underserved by the banking space.
Hong Kong is giving a major push to crypto adoption just at a time when US regulators have initiated a strong crackdown on crypto companies. In the latest development, Hong Kong’s largest virtual bank aka ZA Bank announced that it will allow crypto to fiat conversions.
Besides, ZA Bank also noted that they would be facilitating settlements for regulated Web3 companies in Hong Kong. The company’s announcement came at Hong Kong’s Web3 festival, backed by the local government and attracting crypto startups from all across Asia.
Hong Kong’s largest virtual bank, ZA Bank, launched back in 2020. It has been actively working on offering account services to Hong Kong’s rapidly evolving crypto sector. Speaking on the development, ZA Bank CEO Ronald Iu said that the company will offer token-to-fiat currency conversions on licensed exchanges.
He further noted that the virtual bank will act as a “settlement bank for clients to allow withdrawals in Hong Kong, China, and US currencies after they deposit crypto tokens with exchanges”. HashKey and OSL are two major customers of the bank for its crypto-to-fiat conversion services. ZA Bank said that as more and more companies apply for Hong Kong regulatory licenses, it will serve more and more crypto exchanges.
Offering Services to Web3 Startups
Interestingly, ZA Bank is also looking to offer services to Web3 crypto startups, a sector widely underserved by the banking space. It would be interesting to see whether other banks join the race with ZA Bank for serving Web3 crypto startups. Speaking on the development, Ronald Iu said:
“As Hong Kong is stepping up efforts to cultivate a Web3-friendly environment, ZA Bank’s online account opening for Web3 startups represents a major step forward in the integration of traditional banking services with the Web3 world. It signals a greater acceptance and recognition of the importance of this emerging sector and hopefully will encourage other financial institutions to follow suit in offering tailored banking services for Web3 companies. We look forward to exploring collaborations with key global Web3 businesses such as HashKey, OKX, and more.”
As said, the move comes just at a time when Hong Kong is positioning itself as a crypto-friendly alternative to other jurisdictions such as the US and Europe.