Hong Kong’s largest virtual bank, ZA Bank, has launched a sandbox trial for its new virtual asset trading service, targeting eligible retail investors in the city. This trial aims to offer a simplified digital asset trading experience within Hong Kong’s regulated banking framework, pushing forward the region’s fintech development.
Following a successful pilot, ZA Bank is gearing up to officially roll out its virtual asset trading service through its app, marking a significant step in Hong Kong’s rapidly growing crypto market.
High Returns Drive Hong Kong’s Crypto Investment Surge
ZA Bank cited a recent study showing strong interest among Hong Kong retail investors in crypto trading, with 75% expressing a desire to participate. Of those, 41% are interested in crypto ETFs listed locally, while 39% prefer options available through licensed Hong Kong-based crypto platforms. Key motivators include portfolio diversification, potential for high returns, and expectations of broader acceptance of crypto assets.
Crypto-Friendly Policies Highlighted at Hong Kong FinTech Week 2024
During the 2024 Hong Kong FinTech Week, several major announcements reinforced Hong Kong’s ambitions to become Asia’s digital asset leader. ZA Bank CEO Ronald Iu praised the government’s supportive policies, which are expected to energize Hong Kong’s fintech industry.
The government plans to increase the number of licensed crypto platforms and is reviewing applications for additional exchanges by late 2024. Plans also include tax incentives for crypto investments, anticipated by year-end. Additionally, the Hong Kong Stock Exchange will launch a Virtual Asset Index Series featuring major cryptocurrencies like Bitcoin and Ethereum, further streamlining digital asset trading and investment opportunities for both local and global investors.
