Hong Kong's virtual bank ZA Bank has announced it will allow retail users to directly purchase and sell Bitcoin and Ethereum using fiat currency, marking a significant milestone as the first Asian bank to offer such services. The initiative, launched in partnership with licensed crypto exchange HashKey, reflects Hong Kong's progressive stance on digital assets.
Simplified Cryptocurrency Trading for Retail Users
Key features of ZA Bank's crypto service:
- Minimum transaction: $70 or HK$600
- Flat commission: $1.99 or HK$15 per trade (waived during promotional period)
- Platform fee: 1.5% (reduced to 0.8% until June 2025)
- Risk controls: Users' crypto holdings capped at 20% of total investment assets
Acting CEO Ng Chung-ho emphasized that the service is available to all Hong Kong residents who complete identity verification and risk assessments. "This bridges traditional banking with the crypto ecosystem while ensuring regulatory compliance," he stated.
Digital Banks Pioneering New Financial Services
As one of Hong Kong's first licensed virtual banks (rebranded as digital banks in October 2024), ZA Bank has been at the forefront of financial innovation:
- April 2024: Announced banking services for stablecoin issuers
- July 2024: Joined Hong Kong Monetary Authority's (HKMA) stablecoin sandbox program
Other players making moves:
- Airstar Bank: Partnering with JD.com's blockchain arm on stablecoin-based cross-border payments
- Futu Securities: First online broker to offer Bitcoin/ETH trading to retail clients
The Convergence of Traditional and Crypto Finance
Hong Kong's regulatory landscape has evolved significantly since its 2022 virtual assets policy declaration. Currently, three exchanges hold SFC licenses, with more expected by year-end.
HashKey Group Chairman Xiao Feng outlined four pathways for financial system integration:
- Stablecoins: Projected $6 trillion transaction volume in 2024
- Crypto ETFs: $70B+ in Bitcoin ETF assets under management
- RWA Tokenization: Bringing traditional assets on-chain
- Security Tokens: Potential alternative to IPO financing
"Licensed financial institutions will be crucial connectors between these parallel systems," Feng noted during a recent Web3 summit.
FAQ: ZA Bank's Cryptocurrency Services
Q: Which cryptocurrencies does ZA Bank support?
A: Currently only Bitcoin and Ethereum.
Q: What documents are required for verification?
A: Valid HK ID card, proof of address, and local phone number.
Q: Are there transaction limits?
A: Yes, crypto holdings cannot exceed 20% of your total portfolio value.
Q: How does ZA Bank ensure security?
A: Through HashKey's institutional-grade custody solutions and strict risk controls.
👉 Learn more about crypto-friendly banking solutions
Hong Kong's financial sector continues to demonstrate leadership in digital asset innovation, with ZA Bank's latest move signaling growing mainstream adoption of cryptocurrency services.