Hong Kong’s Largest Digital Bank is Now in the Crypto Game

TLDR

• ZA bank is now making it easy for bankers to buy and sell ETH and BTC.
• ZA is kind of like the Hong Kong version of Chime.
• FDIC pause letters sent to US banks kept services like this from happening stateside. That may be about to change.

Things just got a whole lot more interesting in Hong Kong’s fintech scene. ZA Bank, the city’s largest virtual bank, has officially launched its retail cryptocurrency trading service. 

If you’re a beginner or just dipping your toes into crypto, this might sound like a big deal – because it is. Here’s what you need to know about this latest development and how it impacts you as a potential crypto trader. 

What’s Happening at ZA Bank? 

ZA Bank, known for its role as Hong Kong’s first and largest digital bank, is making waves by allowing retail users to buy and sell crypto directly. 

According to an announcement on Nov. 25, you can now trade Bitcoin ($BTC) and Ethereum ($ETH) using fiat currency through their platform. 

But before you get too excited, here’s the catch — you’ll need to have an account with ZA Bank and complete a risk assessment. Yes, that means answering some questions to ensure you know what you’re getting into. Crypto, after all, is no walk in the park. While we aren’t in HK, it sounds similar to how Robinhood handles its crypto platform.

This service is part of ZA Bank’s push to bridge traditional banking and crypto. They’re blending old-school finance with new-age digital assets, making it easier for you as a retail user to start dabbling in Bitcoin and Ether. 

Why Does This Matter? 

If you’re a crypto beginner, you might wonder why this is newsworthy. Here’s some context to help you understand the significance. 

1. The Rise of Legal Crypto Trading in Hong Kong 

Retail cryptocurrency trading is pretty new in Hong Kong. It only became legal in August 2023, and so far, only three exchanges are licensed by the city’s financial regulator, the Securities and Futures Commission (SFC). These include OSL, HashKey, and the Hong Kong Virtual Asset Exchange. 

ZA Bank’s collaboration with HashKey brings something new to the table—it’s not just another exchange; it’s a bank getting directly involved in crypto trading. For retail users like you, that’s a unique opportunity to explore digital assets under the umbrella of a trusted financial institution. 

2. Simplicity Meets Safety 

One of the biggest barriers to entering crypto is the learning curve. Setting up wallets, transferring money, trading — it can feel overwhelming. ZA Bank simplifies all that by letting you trade directly through their app and integrating cryptocurrency into your everyday banking experience. 

Their partnership with HashKey also ensures compliance with Hong Kong’s regulatory standards. This should be a reassuring factor if you’re new to crypto and cautious about the risks associated with trading digital assets. 

The Bigger Picture of Crypto in Hong Kong 

Hong Kong is positioned to become a major crypto hub. The SFC has signaled that more licenses for crypto exchanges could be approved by the end of 2023, indicating a shift towards greater adoption of digital assets in the region. 

For beginner users, this regulatory environment fosters a degree of safety and trust that’s often missing in less regulated markets. The involvement of established institutions like ZA Bank reinforces this trend, making it easier for everyday users to access cryptocurrencies. 

It Could be a Precursor for What’s to Come in the US

Trump is already building his new regime with crypto in mind. Gensler is out. Lutnik is Trump’s pick for Commerce Secretary. Elon is on board. And the list goes on.

What’s happening in HK could very well be a precursor for what’s to come with the new administration.

Under the Biden administration, the FDIC sent pause letters to banks tinkering with crypto services or servicing crypto-related businesses. That’s why we didn’t see this level of adoption.

Wen US?

With new changes that’ll likely be huge, the next four years could be a much different ballgame. Fair regulation. More services. A more user-friendly experience. This could provide the push for mainstream adoption the industry has been aching for. 

Is it a 100% definite thing? Of course not. We aren’t fortune tellers. But we do keep our ear to the ground. We see what’s happening all over the world. And this is the first time in history that we can say the crypto industry in the US stands a chance at not just catching up, but even surpassing other digital asset hubs in the world.

Crypto may still feel like uncharted territory, but services like this are making it far more accessible. With ZA Bank, you’re not just trading Bitcoin or Ethereum — you’re stepping into the future of finance in an intuitive and secure way. At Dypto, we’re ready for the impending change to finance as we know it. And we’re downright excited.