Hong Kong’s largest virtual bank, ZA Bank, has launched a new service allowing retail users to buy and sell Bitcoin and Ethereum directly using fiat.
According to a Nov. 25 statement from the bank, Hong Kong residents need an account with the bank and must undergo a risk assessment before using the new crypto service linked with the bank’s app.
At the moment, users can only buy Ether (ETH) and Bitcoin (BTC) through ZA Bank. No other cryptocurrencies were mentioned.
Calvin Ng, alternate chief executive of ZA Bank, said the service was launched in partnership with cryptocurrency exchange HashKey to meet regulatory requirements and work toward the overall goal of merging traditional banking with crypto.
“The rise of cryptocurrency presents investors with more diverse asset allocation opportunities,” Ng said.
Livio Weng, CEO of HashKey Exchange, said the exchange will continue working “closely with ZA Bank to drive the development of the Web3 ecosystem” and “diversified financial services to our users.”
ZA Bank launched a sandbox trial for its virtual asset trading service back in October.
Related: Hong Kong warns against crypto firms misrepresenting as ‘banks’
Retail crypto trading only began in Hong Kong in August 2023. Only three exchanges are currently licensed by Hong Kong’s financial regulator, the Securities Futures Commission (SFC).
Crypto exchanges OSL and HashKey received licenses in 2020 and 2022, respectively. Hong Kong Virtual Asset Exchange (HKVAX) became the third in October.
However, the SFC has flagged the possibility that more licenses for crypto exchanges and digital asset firms operating in the region will likely be approved by the end of the year.
ZA Bank was licensed by the Hong Kong Monetary Authority in 2019 and became Hong Kong’s first and largest digital bank. ZA Bank has over 800,000 users. HashKey was established in 2018.
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