In a recent development, Hong Kong’s first and largest digital bank, ZA Bank, has launched a sandbox trial for its new virtual assets trading service. Per an October 29 press release, ZA Bank disclosed that the trial aims to meet the growing demand for crypto assets in Hong Kong.
The bank added that, upon completion of the trial, it will begin preparations for a full launch, which it will achieve via its bank app. It envisions the move will benefit retail users by enabling them to enjoy access to the vast global crypto market.
Growing Interest in Crypto Asset Reported Among Hong Kong Residents
Notably, retail investors in Hong Kong are showing a strong interest in crypto assets. A recent market study reported crypto trading interest in about 75% of retail investors in Hong Kong. Among these retailers, 41% reported a preference for spot or futures crypto ETFs investment. 39% demonstrated a preference for locally licensed and regulated virtual assets platforms.
Furthermore, the study also reported that portfolio diversification, the increased potential for higher short-term returns, and societal acceptance may influence retailers’ motivation to invest in crypto.
Honk Kong’s ZA Bank Aims to Capitalize on Favourable Crypto Regulatory Framework
Meanwhile, ZA Bank’s initiative aligns with Hong Kong’s broader vision to become Asia’s leading hub for digital assets. Consequently, ZA Bank appears to be positioning itself to capitalize on Hong Kong’s new crypto regulatory framework. The bank’s endgame remains to create a bank-related platform to attract users interested in trading virtual assets.
In line with its expansion plan, Hong Zong’s government has revealed plans to expand its roster of licensed crypto trading platforms, aiming for additional digital asset exchanges by late 2024. Bringing additional platforms under official oversight will make crypto trading safer and more accessible within Hong Kong.
Furthermore, the government also disclosed that it aims to introduce tax incentives for crypto investments by the end of the year.
