As Hong Kong continues its crypto-friendly policies, ZA Bank—Hong Kong's largest virtual bank—has announced plans to provide fiat withdrawal services for licensed exchanges, positioning itself as a bridge between users' crypto assets and traditional currencies.
ZA Bank Pioneers Crypto-to-Fiat Services for Licensed Exchanges
According to a Bloomberg report, ZA Bank CEO Ronald Iu revealed in an interview that the bank will offer crypto-to-fiat conversion services to licensed exchanges in Hong Kong.
"ZA Bank will act as a settlement bank, allowing users to deposit crypto tokens on exchanges and withdraw funds in HKD, CNY, or USD," stated CEO Ronald Iu.
The service is already operational with two licensed Hong Kong exchanges—HashKey and OSL—which primarily serve institutional investors. ZA Bank plans to extend this offering to other licensed exchanges in the future.
Key Features:
- Supports withdrawals in HKD, CNY, and USD
- Targets licensed crypto exchanges under Hong Kong’s new regulatory framework
- Excludes mainland Chinese clients due to regulatory restrictions
👉 Discover how Hong Kong is becoming Asia's crypto hub
Hong Kong’s Progressive Crypto Policies Accelerate Industry Growth
Hong Kong's crypto sector has expanded rapidly since the government released its Virtual Asset Policy Statement in October 2022. With new licensing regulations effective June 1, licensed exchanges gained opportunities to serve retail investors—a significant market expansion.
Expanding Banking Support for Crypto Firms
Beyond ZA Bank’s initiative:
- Bank of Communications, Bank of China, and Shanghai Pudong Development Bank’s Hong Kong branches are reportedly exploring crypto-related services.
- Traditional financial institutions increasingly collaborate with crypto firms migrating to Hong Kong.
Why This Matters:
Hong Kong’s clear regulatory framework and banking support create a favorable environment for institutional and retail crypto adoption.
FAQ: ZA Bank’s Crypto Services Explained
Q1: Which currencies does ZA Bank support for crypto withdrawals?
A: HKD (Hong Kong Dollar), CNY (Chinese Yuan), and USD (US Dollar).
Q2: Can mainland Chinese clients use these services?
A: No. ZA Bank excludes mainland customers due to China’s crypto restrictions.
Q3: Which exchanges currently partner with ZA Bank?
A: HashKey and OSL—Hong Kong’s two licensed exchanges as of press time.
Q4: How does Hong Kong’s new licensing regime affect crypto businesses?
A: It allows licensed exchanges to legally serve retail investors, boosting market liquidity.
Q5: Are other traditional banks entering the crypto space?
A: Yes. Major Chinese banks’ Hong Kong branches are actively engaging with crypto firms.
👉 Explore crypto-friendly banking solutions in Asia
Risk Disclosure
Cryptocurrency investments carry high volatility and risk. Investors may lose their entire capital. Conduct thorough risk assessments before participating.