Hong Kong virtual bank will offer crypto accounts and conversions: Report

Hong Kong virtual bank will offer crypto accounts and conversions: Report

At a time when many US-based businesses are having difficulty finding local banking partners, they are often looking abroad for account services.

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ZA Bank, Hong Kong’s largest virtual bank in terms of assets, will reportedly offer crypto account services and facilitate cryptocurrency-to-fiat transactions.

A Bloomberg report dated April 12th states that the bank will be acting as a settlement bank to allow token deposits to licensed exchanges to withdrawn in Hong Kong dollars or Chinese yuan. It also offers account services to crypto-firms

Following a trial that attracted approximately 100 crypto firms to participate in a regulatory sandbox, Ronald Iu, CEO of ZA Bank, stated that no clients from mainland China would be allowed to open accounts.

Iu also stated that the only licensed crypto exchanges in Hong Kong are HashKey (and OSL) and currency conversions.

He stated that ZA Bank would provide the same service to other exchanges once they are licensed.

Related: Blockchain will be a leading technology in Europe and Asia, not the US.

The U.S. crypto firms are having difficulty finding banking partners after the collapse of crypto-friendly banks Silicon Valley Bank and Silvergate Bank. However, the Hong Kong-based ZA Bank seems to offer a solution. Iu added:

“The top concern of the many interested companies, large and small, is to find a way to make things work.

The announcement by ZA Bank comes after a concerted effort of Hong Kong regulators to make the region a crypto hub. Many in the crypto community believe Hong Kong will succeed in its efforts compared to hostility coming from U.S. regulators.

Chinese state-owned banks are also said to have shown an interest in crypto firms moving into the city. They either offer banking services or make inquiries.

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