In an interview, Ronald Iu, the lender’s chief executive officer, said ZA Bank would provide token-to-fiat currency conversions through authorized exchanges. Chinese billionaire Ou Yaping founded the bank, among others. Once clients deposit crypto tokens with exchanges, ZA will operate as a settlement bank to enable withdrawals in Hong Kong, Chinese, and US dollars, Iu added.
According to Devon, ZA Bank, a Hong Kong virtual bank, says it is a “Web3-friendly” lender and is open to digital asset companies that pass regulatory and internal requirements. Sin, the bank’s alternative chief executive officer. He said in a statement that it opened a pilot program to open express trading accounts last year.
After the service officially goes live, customers exchanging cryptocurrencies at licensed exchanges can withdraw HKD, RMB, or USD.
After defining Hong Kong as a crypto finance hub, crypto companies flocking to Hong Kong after the city opened up to the battered sector are finding a source of support, surprising potential funding from China’s state-owned banks.
Chinese banks have been in direct contact with crypto businesses over the past few months, indicating that the city’s push to become a significant digital asset hub has received backing from Beijing, even though cryptocurrency trading has been banned in the mainland for over a year.
While Hong Kong harbors high crypto ambitions and boasts a relatively lower tax policy for businesses, the city is still likely to find competition with other crypto hubs. For the first 2 million HKD ($254,930), of taxable profit is 8.25%, while any gain above that amount is taxed at 16.5%.
But compared to other crypto hubs like Dubai, which charges a fixed rate of 9%, and Switzerland – with an enterprise rate of 8.5%, it is still not very competitive.
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