ZA Bank, Hong Kong’s largest virtual bank, will act as an intermediary for deposits and withdrawals from cryptocurrency trading platforms, as reported by Bloomberg with reference to the head of the financial organization Ronald Yu.
This allows users of licensed digital asset exchanges in Hong Kong to deposit fiat currencies and withdraw Chinese Yuan, Hong Kong and US dollars.
However, the bank does not offer services to customers from China due to restrictions in place there. Additionally, ZA Bank provides online accounts to local Web3 start-ups and small companies from the “regulatory sandbox.”
The Hong Kong Bureau of Financial Services and Treasury released a statement in October 2022 to ease restrictions on cryptocurrencies and willingness to work with virtual asset service providers.
Subsequently, in January 2023, Hong Kong Financial Secretary Paul Chan announced that the jurisdiction was ready to accept cryptocurrency companies from all over the world and had finalized a licensing regime for the industry.