Hong Kong Virtual Bank to Offer Crypto Conversions and Accounts: Report

The crypto account services come at a time when US-based enterprises are trying to find local banking partners and are regularly going abroad. According to reports, ZA Bank, Hong Kong’s largest virtual bank by assets, is planning to offer crypto account services and facilitate crypto-to-fiat swaps.

According to a Bloomberg article from April 12, the bank would function as a settlement bank, allowing token deposits at approved exchanges to be withdrawn in Hong Kong dollars, Chinese yuan, and US dollars, and it will also provide account services to crypto companies.

The accounts for local crypto enterprises are the result of a trial in a regulatory sandbox in which roughly 100 firms participated, although ZA Bank’s CEO Ronald Iu stated that clients from mainland China would not be granted the service due to the country’s regulations.

Currency conversions are now offered by the only two licensed crypto exchanges in Hong Kong, HashKey and OSL, according to Iu. He stated that once other exchanges are licensed, ZA Bank will give the same service.

As crypto firms in the United States struggle to find banking partners in the aftermath of the failures of crypto-friendly banks Silicon Valley Bank, Silvergate Bank, and Signature Bank, Hong Kong-based ZA Bank appears to be offering a potential solution, with Iu adding: “For the dozens of interested firms, big or small, from abroad and local, the top of their concern is to have a path to make things work.”

The news from ZA Bank comes after a determined attempt by Hong Kong regulators to transform the region into a crypto hub, and many in the crypto world believe Hong Kong’s stance, in contrast to antagonism from U.S. officials, will help it succeed.

Chinese state-owned banks are also apparently interested in the crypto businesses relocating to the area and are either offering banking services to them or inquiring about them.