Hong Kong’s virtual bank ZA Bank plans to transfer tokens into local currency and provide account services for the burgeoning crypto sector.
ZA Bank, launched in 2020, will offer token-to-fiat currency conversions over licensed exchanges. Thus, the bank will act as a settlement institution for customers. This is reported by Bloomberg.
According to sources, the bank won’t offer services to clients from Mainland China due to restrictions imposed by the country. Under the new rules, customers will be able to withdraw currency once they deposit crypto tokens on exchanges. Transactions are possible in Hong Kong and U.S. dollars and Chinese yuan.
ZA Bank plans to provide similar services to other licensed exchanges coming up in Hong Kong. In recent months, the bank has been conducting AML testing on regular checklists to comply with the regulator’s requirements.
ZA Bank previously tested a regulatory program with about 100 crypto and Web3 startups. The bank now provides an express account opening service for businesses online.
Hong Kong currently has over 800 different FinTech companies offering various types of digital asset services, and the Hong Kong jurisdiction is considered the friendliest for the widespread adoption of cryptocurrency initiatives.