Hong Kong’s ZA Bank becomes first virtual bank to get SFC license

As a seasoned crypto investor with a keen eye for emerging opportunities, this latest development with ZA Bank piques my interest significantly. Having navigated through the tumultuous waves of the crypto market, I have learned to recognize the potential of a game-changer when I see one.


In an innovative move, ZA Bank secures a license from the Securities and Futures Commission in Hong Kong, making it the city’s inaugural digital-only bank authorized for Type 1 regulated activities.

As reported by HKEJ, on September 30th, a representative from ZA Bank announced that they have been granted permission by the China Securities Regulatory Commission to modify the terms of their Type 1 license, enabling them to facilitate virtual asset transactions with updated conditions.

This news comes after a twelve-month journey the bank has been on, following the tightening of regulations by Hong Kong financial authorities towards unauthorized cryptocurrency exchanges and the establishment of a supervised digital asset trading environment.

The bank intends to launch a cryptocurrency-related investment service, adhering to the regulatory guidelines established by the nation’s financial authorities.

In a recent announcement, the head of ZA Bank, Rockson Hsu, confirmed the company’s ongoing dedication to disrupting the banking industry, now being two years since its initial launch. Additionally, he mentioned the upcoming rollout of their investment fund services.

Hsu expressed excitement about improving the user’s gaming-influenced investment journey even more!

2022 saw Hong Kong enact new rules for crypto exchanges within its borders, necessitating license applications by February 2024. However, many companies found it challenging to secure these licenses, with over 24 firms experiencing difficulties in this regard as of now. As we approach August 2024, it’s been reported that approximately 12 applications have been withdrawn from the process, including those submitted by Bybit, Huobi HK, and OKX.

By May 2024, the Securities and Futures Commission (SFC) advised investors to exclusively utilize authorized trading platforms. Notably, the nation’s cryptocurrency rules were enacted in June 2023.

On July 18, 2024, ZA Bank commenced providing banking services to firms issuing stablecoins, following the Hong Kong Monetary Authority’s announcement of an approved list of companies participating in its stablecoin experimental program.

On July 18th, ZA Bank announced a partnership with RD InnoTech, a company approved by the HKMA for sandbox tests. This collaboration enabled ZA Bank to welcome approximately ten new clients using stablecoins.

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2024-09-30 15:20