Hong Kong’s New Crypto Licensing Regime: ZA Bank First To Gain Approval?

Sahana Kiran
Source – Binance

Hong Kong enthusiastically embraced the cryptocurrency trend, but the special administrative region opted for a regulatory approach. Earlier this week, the government announced its decision to permit retail investors to utilize licensed cryptocurrency exchanges. Through this move, the government was aiming to embrace cryptocurrencies while ensuring the protection of its citizens.

ZA Bank, one of Hong Kong’s prominent banks, has revealed its upcoming launch of virtual asset trading services for retail investors. To ensure compliance with regulations, ZA Bank plans to work closely with licensed local virtual asset exchanges. Upon obtaining regulatory approval, retail investors will be able to buy and sell virtual assets through the ZA Bank App.

Furthermore, the Hong Kong Securities and Futures Commission [SFC] has confirmed that it has not yet approved any cryptocurrency trading platform to provide services. However, during the consultation period, the SFC received 152 written submissions from the industry. The new rules will be implemented starting June 1.

In April, ZA Bank made an announcement stating its intention to act as a “settlement bank” for cryptocurrency exchanges. ZA Bank emphasized that it would collaborate exclusively with licensed exchanges, ensuring compliance with regulatory requirements and promoting a secure and regulated environment for crypto transactions. Additionally, the bank has future plans to introduce U.S. stock trading services. With this, the entity would be expanding its offerings beyond virtual asset trading.

Here’s how ZA Bank intends to acquire a crypto license

The Hong Kong bank seems to be prioritizing customer security as well as regulatory compliance. The firm intends to engage closely with several stakeholders in order to establish strong security. Through this, ZA Bank would prove its safety and reliability. ZA Bank hopes to do so by implementing stringent security measures, adhering to regulatory guidelines, and collaborating with trusted partners. The bank will provide user education on the characteristics and risks associated with crypto transactions. This will ensure that users have sufficient information to make smart choices.