The day after Hong Kong published its new regulations, the bank disclosed its ambitions as part of its diversification strategy.
The administrative region will soon be able to trade virtual assets on a retail level thanks to ZA Bank, a Hong Kong-based company. This follows the Hong Kong Securities and Futures Commission’s (SFC) announcement that it will consider license requests for platforms for trading virtual assets for retail customers.
According to their announcement, ZA Bank will collaborate with regionally authorized virtual asset exchanges in order to secure regulatory licenses. Customers of the bank will be able to trade virtual assets using fiat cash inside the ZA Bank App once the necessary approvals are in place.
The shift to trading virtual assets is a component of ZA Bank’s larger strategy, which also includes future intentions to trade American stocks.
The SFC has released new regulations that include topics like asset custody security requirements, cybersecurity standards, and the segregation of client assets in conjunction with the beginning of the application procedure.
In June, these regulations are expected to go into effect. The SFC does not currently regulate the majority of publicly accessible virtual asset trading platforms in Hong Kong.
ZA Bank — Hong Kong’s largest digital bank, controlled by Chinese internet insurer ZhongAn Online P&C Insurance — said of its plans:
“With this move, ZA Bank is set to support the Hong Kong SAR [Special Administrative Region] government’s vision to develop a vibrant sector and ecosystem for virtual assets.”
In April, it was revealed that ZA Bank was getting ready to serve as a settlement bank for token withdrawals from authorized exchanges in Hong Kong dollars, Chinese yuan, and US dollars.