ZA Bank, based in Hong Kong, has unveiled its diversification strategy, which includes retail virtual asset trading in the region. The announcement came on May 24, following the release of new guidelines by the Hong Kong Securities and Futures Commission (SFC) regarding retail virtual asset trading platform licenses.
To obtain regulatory approvals, ZA Bank intends to partner with locally licensed virtual asset exchanges. Once the necessary approvals are obtained, the bank's customers will be able to trade virtual assets using fiat currency within the ZA Bank App.
In addition to virtual asset trading, ZA Bank has outlined a broader strategy that encompasses future trading in United States stocks.
The SFC's new guidelines, which will take effect in June, include provisions for asset custody safety requirements, cybersecurity standards, and the segregation of client assets. These guidelines are a significant step towards regulating the numerous unregulated virtual asset trading platforms available to the public in Hong Kong.
The announcement of the licensing procedure attracted significant attention, with 152 comments received during the consultation period. Notably, a subsidiary of the Chinese state-owned Greenland company has also applied for a virtual asset trading license in Hong Kong.
ZA Bank, the largest digital bank in Hong Kong, is controlled by ZhongAn Online P&C Insurance, a Chinese internet insurer. The bank expressed its commitment to supporting the Hong Kong government's vision of fostering a vibrant sector and ecosystem for virtual assets.
Hong Kong's increasing prominence in the virtual asset space is further evidenced by the launch of the Hong Kong Monetary Authority's digital Hong Kong dollar pilot project, in which ZA Bank is participating. The region has also witnessed the emergence of various tech accelerators and incubators.
Previously, in April, ZA Bank was reported to be preparing to serve as a settlement bank for token withdrawals from licensed exchanges, facilitating transactions in Hong Kong dollars, Chinese yuan, and U.S. dollars.
In summary, ZA Bank's diversification strategy includes retail virtual asset trading in Hong Kong, with plans to collaborate with local licensed virtual asset exchanges. The bank aims to support the government's vision of developing a thriving virtual asset sector.
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