3 - 4 minute read
The Hong Kong-based virtual bank, ZA Bank, has announced plans to offer services to crypto firms, including account services and facilitating crypto-to-fiat exchanges. ZA Bank will act as a settlement bank to allow token deposits at licensed exchanges to be withdrawn in Hong Kong dollars, Chinese yuan, and US dollars. Their announcement comes in light of the difficulties crypto firms in the US are experiencing in finding banking partners, following the collapse of crypto-friendly banks Silvergate Bank, Signature Bank, and Silicon Valley Bank.
ZA Bank is Hong Kong’s biggest virtual bank by assets and reportedly participated in a regulatory sandbox trial where approximately 100 firms participated. The bank will be offering account services to crypto firms and currency conversions, currently offered by the two only licensed crypto exchanges in Hong Kong, HashKey and OSL. ZA Bank’s CEO, Ronald Iu, explained that funds from mainland China will not be accepted due to the country’s restrictions.
Goodbye Silvergate & Signature 🇺🇸
— T ⛩ てぃ (@TeongH_SR) April 12, 2023
Hello ZA Bank 🇭🇰 https://t.co/c6pmuycjev
The announcement from ZA Bank offers potential solutions to the issues facing crypto firms in the US. As ZA Bank steps up to provide crypto account offerings, traders can look for new opportunities in the crypto market. However, it is important to remember that mainland China’s restrictions will limit the flow of funds. It may be beneficial to keep an eye on potential changes in Chinese regulations, as they may affect the crypto market.
“Crypto firms looking to bank in the US have struggled to find partners since the collapse of crypto-friendly banks such as Silvergate Bank, Signature Bank, and Silicon Valley Bank.”
Bloomberg report
The Bottom Line
Hong Kong’s decision to create a regulatory sandbox, allowing ZA Bank to offer services to local crypto firms, could be a solution for crypto firms worldwide, looking to establish banking partnerships. However, as China’s restrictions limit mainland funds being accepted, it will be great to keep track of potential changes. For traders, the move towards crypto account offerings offers new opportunities in the market, especially in Hong Kong, where regulators are striving to turn the region into a crypto hub.
