ZA Bank becomes first lender in Hong Kong to offer crypto trading for retail users

Hong Kong-based ZA Bank has become the first digital neobank in the region to give retail customers access to crypto.

ZA Bank, Hong Kong’s largest digital bank, has launched crypto trading for retail customers, allowing users to trade Bitcoin (BTC) and Ethereum (ETH) in Hong Kong dollars and US dollars.

In its Nov. 25 press release, the bank cited a Hong Kong Banking Association survey that found nearly 70% of respondents see bank-backed crypto services as a way to simplify transactions and increase adoption. Users can start trading with a deposit of $70 and benefit from 0% commission for the first three months.

According to the bank’s statement, users will be able to start trading with a minimum deposit of $70, with zero commission offered for the first three months. ZA Bank has partnered with HashKey Exchange, a licensed Hong Kong-based crypto platform, to ensure regulatory compliance.

The launch is in line with Hong Kong’s push to position itself as a regional hub for the crypto space, as the industry sees significant global growth with user numbers exceeding 560 million by mid-2024, according to industry estimates. Beyond cryptocurrency trading, the bank provides access to funds and US stocks.

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 compulsory licensing for cryptocurrency exchanges in 2022, which must be complied with by February 2024. While more than 24 companies applied, almost half withdrew applications by August, including major players such as Bybit, Huobi HK and OKX; This landscape underscores the difficulties in navigating the city’s regulatory landscape.