- ZA Bank obtains SFC approval for a Type 1 license, allowing crypto trading services.
- The bank’s approval aligns with Hong Kong’s regulatory push to control unlicensed exchanges.
- ZA Bank aims to enhance its services through crypto trading and future investment fund offerings.
ZA Bank, Hong Kong’s largest virtual bank, has received approval from the Securities and Futures Commission (SFC) for Type 1 regulated activity, allowing it to offer crypto trading services.
This approval is in line with Hong Kong’s recent efforts to establish a more regulated and secure environment for digital assets as the city tightens controls on unlicensed exchanges. Last year, Hong Kong introduced new crypto regulations to attract crypto firms and position itself as a global hub for digital assets.
ZA Bank to Launch Crypto Trading After Sandbox Testing
ZA Bank, a subsidiary of China’s ZhongAn Online P&C Insurance, has been working towards this over the past year. In May, ZA Bank signaled its interest in offering virtual asset services. By September, the SFC granted the bank permission to expand its Type 1 license to include cryptocurrency trading. The bank will now undergo sandbox testing before fully launching its services.
This development reflects Hong Kong’s ambition to compete with other crypto-friendly regions like Singapore and Dubai. The city has implemented a regulatory framework that requires all crypto exchanges to apply for licenses by February 2024. Since May, unlicensed exchanges have been forced to shut down.
Read also: Hong Kong Solidifies Crypto Hub Status with Bitcoin ETF Growth
ZA Bank CEO: “A Significant Milestone”
ZA Bank’s CEO, Rockson Hsu, said the SFC approval is a significant milestone for the bank. He noted that the bank is preparing to launch its investment fund service.
“We look forward to further enhancing user experience with our game-changing investment fund services.”
Meanwhile, this approval also follows other moves by Hong Kong’s regulators to support the crypto industry. Earlier this year, the city launched Asia’s first exchange-traded funds (ETFs) linked to Bitcoin and Ether.
Read also: Hong Kong Police Bust Crypto Scam Ring, 25 Arrested
With this regulatory clarity, ZA Bank’s expansion into cryptocurrency trading will likely contribute to Hong Kong’s goal of becoming a leading destination for digital asset firms.
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