A major Hong Kong-based virtual bank has taken a historic step by allowing retail customers to buy and sell cryptocurrencies directly through its platform. This move signals a significant shift toward the mainstream adoption of digital assets within the traditional banking sector in Asia.
The service, introduced by ZA Bank, supports trading in Bitcoin and Ethereum using fiat currency. It is currently the first and only banking service in Asia to offer such functionality to retail users. The minimum transaction amount is set at 600 HKD or approximately 70 USD. A commission of 15 HKD or 1.99 USD is charged per trade, along with a platform fee of 1.5% of the transaction value. A promotional offer is in place until the end of June 2025, waiving the commission and reducing the platform fee to 0.8%.
The service is available to all Hong Kong residents who hold a valid Hong Kong ID card, proof of address, and a local phone number. Users are required to complete a risk assessment questionnaire. To ensure responsible investing, the bank limits a user’s cryptocurrency holdings to no more than 20% of their total investment portfolio.
How a Bank Can Offer Cryptocurrency Trading
Under Hong Kong's regulatory framework, financial institutions that wish to provide virtual asset trading services independently must obtain both Type 1 (dealing in securities) and Type 7 (automated trading services) licenses from the Securities and Futures Commission (SFC). They must also comply with the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO).
ZA Bank currently holds a Type 1 license but does not possess a Type 7 license. So how are they legally offering this service?
The bank has chosen a partnership model with a licensed virtual asset exchange to efficiently deliver this service while maintaining regulatory compliance.
According to legal experts, this approach allows the bank to act as a facilitator or manager while the licensed exchange handles the actual trading, settlement, and custody. Since the partner exchange is already fully compliant with SFC regulations, the bank can leverage its existing infrastructure and licenses. This “partnership equals compliance” model simplifies the process for traditional financial institutions entering the digital asset space.
The Role of Licensed Exchange Partners
HashKey Exchange, the largest licensed virtual asset exchange in Hong Kong, is the technology and compliance partner behind ZA Bank’s new offering. It provides a white-label solution that enables banks and brokers to integrate crypto trading services via API interfaces.
When a user places a trade through the bank’s interface, the transaction is executed on HashKey’s platform. All trading, clearing, and custody occur in the background under HashKey’s licensed framework. This model is not entirely new—HashKey has previously enabled similar services for securities brokers in Hong Kong.
For instance, Victory Securities collaborated with HashKey to quickly launch Bitcoin and Ethereum trading for its clients. Under this arrangement, the broker holds a master account with the exchange and executes trades on behalf of its users.
This partnership structure reduces the technical and regulatory burden on traditional financial institutions. It offers a cost-effective and agile alternative to building and maintaining a proprietary trading system from scratch.
Global Banking Trends in Crypto Adoption
The involvement of traditional banks in cryptocurrency services is a growing global phenomenon. A 2021 report by Blockdata revealed that more than 55% of the world’s top 100 banks were already engaged in crypto-related activities. These include Bitcoin trading, custody solutions, and portfolio management services.
Major financial institutions like J.P. Morgan and Goldman Sachs have reported substantial growth in their digital asset divisions. J.P. Morgan’s Onyx digital asset platform has processed over $500 billion in transactions. Goldman Sachs recorded a 42% year-over-year increase in crypto trading volume in Q1 2024.
In Europe, digital banking platform Revolut obtained a banking license in July 2024, along with authorization to provide virtual asset services.
Hong Kong’ Supportive Regulatory Climate
Hong Kong’s financial regulators have been actively encouraging the development of the virtual asset sector. In April 2023, the Hong Kong Monetary Authority (HKMA) urged banks to adopt a more flexible approach when handling account applications from virtual asset service providers.
Earlier in 2024, the first Bitcoin futures ETF launched in Hong Kong, managed by CSOP Asset Management. While this provided institutional investors with exposure to Bitcoin, the product came with limitations such as high management fees, trading latency, and limited investor control over the underlying assets.
The recent authorization of retail crypto trading via a licensed bank represents another milestone in making virtual assets more accessible to the general public in a regulated environment.
Why Virtual Banks Are Leading the Change
According to industry executives, virtual banks are naturally positioned to lead the adoption of crypto banking services. Their operational flexibility, innovative culture, and focus on digital-native audiences give them an advantage over traditional banks.
Livio Weng, CEO of HashKey Exchange, noted that virtual banks need to differentiate themselves in a competitive market. Offering cryptocurrency services allows them to tap into growing demand, particularly among younger investors who are more open to digital assets.
He also emphasized that the line between traditional and virtual assets is gradually blurring. In the near future, users are likely to hold both types of assets and manage them through unified platforms.
Some market observers believe that the development of virtual asset services could bring renewed energy and liquidity to Hong Kong’s financial market. It also creates new pathways for both Chinese and international institutions to participate in the digital economy.
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Frequently Asked Questions
Who can use ZA Bank’s cryptocurrency trading service?
The service is available to all Hong Kong residents who are 18 years or older. Users must have a valid Hong Kong ID, proof of address, and a local mobile number. They are also required to complete a risk assessment before trading.
What cryptocurrencies are supported?
Currently, ZA Bank only supports buying and selling Bitcoin (BTC) and Ethereum (ETH). The bank has not yet announced plans to add other cryptocurrencies.
What are the fees involved?
Each trade incurs a commission of 1.99 USD or 15 HKD and a platform fee of 1.5% of the trade value. Until June 2025, the commission is waived and the platform fee is reduced to 0.8% as part of a promotional offer.
Is there a limit on how much cryptocurrency I can hold?
Yes, to promote responsible investing, ZA Bank limits a user’s cryptocurrency holdings to a maximum of 20% of their total investment portfolio.
How does ZA Bank ensure regulatory compliance?
ZA Bank partners with HashKey Exchange, a licensed virtual asset exchange fully regulated by the SFC. This allows the bank to offer trading services under HashKey’s existing licenses and compliance framework.
Are traditional banks also offering similar services?
As of now, virtual banks like ZA Bank are leading this initiative due to their technological agility and target audience. However, more traditional banks are expected to follow as regulatory frameworks become more established.