Hong Kong’s ZA Bank begins sandbox pilot of crypto trading service

Hong Kong’s digital bank ZA Bank has launched a sandbox trial of its crypto trading service, which aims to provide retail investors with a regulated platform for trading virtual assets.

Hong Kong-based virtual bank ZA Bank has launched a sandbox trial for its new virtual asset trading service for select retail customers.

In a press release on Tuesday (October 29), ZA Bank said the trial initiative aims to meet growing demand in Hong Kong. A recent survey by the Hong Kong Association of Mutual Funds revealed that 75% of retail investors are interested in crypto trading. .

Following completion of the pilot, ZA Bank plans to prepare for a full launch through its banking app, offering retail users more direct access to the global crypto market, which currently has a market capitalization of over $2 trillion.

“The wave of positive policies and good news from the Hong Kong government and industry during FinTech Week will give new impetus to the local fintech ecosystem.”

Ronald Iu, ZA Bank chief executive officer

Although no timeline has been provided for the launch of the crypto trading service, the bank appears to be positioning itself to take advantage of Hong Kong’s new regulatory framework for crypto, hoping to attract users interested in virtual assets in a bank-regulated environment.

In late September, the bank received approval from the China Securities Regulatory Commission to allow the company to add new conditions for virtual asset transactions to its Type 1 license, becoming the first Hong Kong-only digital bank to receive a license from Securities and Futures. Type 1 regulated activity commission.

Hong Kong introduced new regulations in 2022 that require all crypto exchanges operating in the city to apply for licenses by February 2024. Since then, more than 24 companies have struggled to obtain a license. As of August 2024, approximately 12 applications, including Bybit, Huobi HK and OKX, have been withdrawn.