Hong Kong’s ZA Bank offers crypto conversions, accounts in city’s push

Hong Kong’s biggest virtual bank is pushing into transfers of crypto and fiat currencies and will provide account services for the city’s burgeoning digital asset sector.

Founded by Chinese billionaire Ou Yaping among others, ZA Bank will offer token-to-fiat currency conversions over licensed exchanges, Ronald Iu, the lender’s chief executive officer, said in an interview Tuesday. ZA 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, Iu said.

The business model is already in operation with HashKey and OSL, the only two currently licensed crypto exchanges in Hong Kong, Iu said. ZA Bank will also provide the same service for other exchanges as they become licensed.

“For the dozen of interested firms, big or small, from abroad and local, top of their concern is to have a path to make things work,” said Iu.

Hong Kong is going against the current in opening up to the beleaguered sector as it seeks to revive its status as a financial centre following years of Covid restrictions and political upheaval. But access to banking have been a major hurdle for the city’s ambitions. The city’s banking and securities regulators will host a round table for crypto players and bankers to share experiences and perspectives on banking services later this month.

Hong Kong is planning to roll out a revamped virtual asset exchanges framework as of June 1 that allows exchange operators to open to retail investors.