Hong Kong Virtual Bank ZA Bank Offers Cryptocurrency to Fiat Currency Conversion Service

Hong Kong's largest virtual bank, ZA Bank, is pushing the conversion between cryptocurrencies and fiat currencies, and will provide account services for Hong Kong's booming digital asset sector.

In an interview on Tuesday, Ronald lu, CEO of ZA Bank, said the bank will act as a settlement bank, offering customers a token-to-fiat currency conversion service through licensed exchanges. Customers who have deposited cryptocurrencies on the exchanges can withdraw them in Hong Kong dollars, Chinese yuan or U.S. dollars.

This business model is already in place at Hashkey and OSL, the only two licensed cryptoexchanges in Hong Kong today, he said. ZA Bank will provide the same service to other licensed exchanges in the future.

ZA Bank also offers online account opening services for local Web3 startups and small and medium-sized businesses. According to Devon Sin, the bank's alternate CEO, the company connects the registry of Hong Kong companies, and acquired very little information input and minimal cross-checking.

To comply with regulatory requirements, ZA Bank currently plans to work only with licensed exchanges and conduct anti-money laundering reviews based on the usual checklists.

Due to policy restrictions in mainland China, ZA Bank's services are not available to customers there, lu said. Also, the company does not expect to need to hire new employees to handle this new business.

(Source: Bloomberg)