In a landmark move for digital finance in Asia, ZA Bank—the first virtual bank in Hong Kong—has launched a regulated service allowing retail customers to buy and sell major cryptocurrencies using fiat currency. This development marks a pivotal step toward the integration of traditional banking and digital asset ecosystems, positioning Hong Kong as a leading hub for Web3 innovation.
The service currently supports Bitcoin (BTC) and Ethereum (ETH), making ZA Bank the first licensed bank in Asia to offer direct crypto trading to individual users. By partnering with HashKey Exchange, a Securities and Futures Commission (SFC)-licensed platform, ZA Bank ensures full compliance with local regulations while delivering seamless access to the growing crypto market.
👉 Discover how banks are bridging the gap between fiat and digital assets.
Seamless Crypto Access with Low Entry Barriers
ZA Bank has designed its crypto trading feature to be accessible and user-friendly. The minimum investment required is just $70 USD (or HK$600), lowering the barrier to entry for new investors. Each transaction incurs a standard fee of 1.5% platform fee and a flat commission of HK$15 (approximately $1.99).
To encourage early adoption, ZA Bank is offering a promotional rate until June 30, 2025: users will enjoy zero commission fees and a reduced platform fee of just 0.8%. This incentive period reflects the bank’s commitment to driving financial inclusion and digital literacy among Hong Kong residents.
Eligibility is straightforward but secure: applicants must be Hong Kong residents holding a valid Hong Kong ID card, provide proof of address, and complete a risk assessment. To safeguard investor interests, ZA Bank limits cryptocurrency holdings to no more than 20% of a customer’s total investment portfolio.
This cautious approach aligns with regulatory expectations and promotes responsible investing—especially important in a volatile market like crypto.
Strategic Partnership with HashKey Exchange
The launch of this service is powered by a strategic collaboration between ZA Bank and HashKey Exchange, one of Hong Kong’s three SFC-licensed virtual asset platforms (alongside OSL and HKVAX). HashKey provides critical backend infrastructure, including custody, trading execution, and clearing services, ensuring that user assets are securely managed under strict regulatory oversight.
Wu Chung-ho, Alternate Chief Executive Officer of ZA Bank, emphasized that the partnership aims to “bridge the gap between traditional finance and the emerging digital asset economy” while maintaining compliance with Anti-Money Laundering (AML) and Know Your Customer (KYC) requirements.
Echoing this sentiment, HashKey representatives affirmed their long-term vision: to expand financial access through Web3 technologies and deepen integration with regulated financial institutions across Asia.
Market data supports this trend. According to a recent survey by the Hong Kong Association of Banks, nearly 70% of respondents indicated they would be more likely to invest in virtual assets if offered through trusted banking channels. This shift signals growing mainstream acceptance and demand for regulated crypto solutions.
👉 See how regulated exchanges are shaping the future of finance.
The Rise of Digital Banks in Hong Kong
ZA Bank received its virtual banking license from the Hong Kong Monetary Authority (HKMA) in 2019—later reclassified as a digital bank in October 2024. Since then, it has consistently pioneered fintech innovations tailored to Hong Kong’s evolving financial landscape.
In April 2024, ZA Bank announced plans to provide banking services to stablecoin issuers, supporting the city’s push toward becoming a global Web3 hub. These services include:
- Fiat-backed reserve account management
- Fund transfer capabilities
- Payroll processing
- Customized deposit products
This initiative supports issuers participating in the HKMA’s Stablecoin Issuer Sandbox, launched on July 18, 2024. The first cohort includes high-profile players such as JD Blockchain Tech (Hong Kong), Circle Innovation Technology, and a joint application by Standard Chartered Bank (Hong Kong), Animoca Brands, and HKT.
Stablecoins—digital tokens pegged to real-world assets like the U.S. dollar—are seen as key infrastructure for future financial systems due to their price stability and cross-border utility.
Notably, another Hong Kong digital bank, Airstar Bank, has also entered this space. Backed by Xiaomi Group and Futu Securities, Airstar is collaborating with JD Blockchain Tech within the sandbox to explore cross-border payment solutions using stablecoins.
Meanwhile, Futu Securities itself has become the first online brokerage in Hong Kong to offer retail investors direct access to Bitcoin and Ethereum trading, further blurring the lines between traditional capital markets and digital assets.
Bridging Two Financial Ecosystems
Since releasing its Virtual Asset Policy Declaration in 2022, Hong Kong has steadily built a robust regulatory framework for digital assets. As of August 2023, retail investors are permitted to trade cryptocurrencies on licensed platforms—a policy shift that paved the way for ZA Bank’s latest offering.
Today, three exchanges hold full SFC licenses: OSL (2020), HashKey (2022), and HKVAX (October 2024). More licenses are expected before the end of 2025 as global firms seek entry into Asia’s most open crypto market.
Dr. Xiao Feng, Chairman of HashKey Group, articulated a broader vision during a recent keynote: we are witnessing the emergence of two parallel financial systems.
“One is the traditional financial system based on bank accounts and fiat money. The other is the crypto financial market built on blockchain, decentralized ledgers, and digital-native assets.”
He predicts these systems will increasingly converge by 2025 through four key channels:
- Stablecoins: Projected to facilitate over $6 trillion in transactions in 2024, stablecoins serve as the primary bridge between fiat (PayFi) and crypto economies.
- Crypto ETFs: Products like spot Bitcoin ETFs allow traditional investors to gain exposure without managing private keys. U.S.-listed Bitcoin ETFs now hold nearly $70 billion in on-chain assets.
- RWA (Real World Asset Tokenization): Traditional assets—from real estate to bonds—are being tokenized on-chain, unlocking liquidity and global access.
- STO (Security Token Offerings): While still nascent, STOs could soon enable Web3 companies to raise capital or go public directly via token issuance—bypassing traditional IPO routes.
Crucially, Dr. Xiao stressed that this convergence must be led by licensed financial institutions like ZA Bank, which act as trusted intermediaries ensuring compliance, security, and investor protection.
👉 Explore how real-world assets are being transformed by blockchain technology.
Frequently Asked Questions (FAQ)
Q: Can anyone use ZA Bank’s crypto trading service?
A: The service is available to all Hong Kong residents who hold a valid ID card, provide proof of address, pass KYC checks, and complete a risk assessment.
Q: Which cryptocurrencies can I trade?
A: Currently, only Bitcoin (BTC) and Ethereum (ETH) are supported. Other cryptocurrencies are not available at this time.
Q: Is my crypto asset safe with ZA Bank?
A: Yes. While ZA Bank facilitates trading, custody is managed by HashKey Exchange—a regulated entity with institutional-grade security protocols.
Q: Are there any limits on how much crypto I can hold?
A: Yes. For risk management purposes, your crypto holdings cannot exceed 20% of your total investment portfolio with ZA Bank.
Q: What fees apply during the promotional period?
A: Until June 30, 2025, there are no commission fees, and the platform fee is reduced to 0.8% per trade.
Q: How does this service benefit the average investor?
A: It offers a secure, regulated, and familiar banking interface to enter the crypto market—reducing complexity and increasing trust compared to unregulated platforms.
By integrating cryptocurrency trading into its core banking platform, ZA Bank is not just responding to market demand—it’s shaping the future of finance. With strong regulatory alignment, strategic partnerships, and innovative product design, this move sets a precedent for digital banks worldwide.