Hong Kong’s ZA Financial institution, a unit of China’s ZhongAn On-line P&C Insurance coverage, is reportedly exploring methods to supply digital asset-related companies after new rules for digital property launch in June.
To ascertain itself as a crypto hub, Hong Kong carried out a brand new regulatory framework for crypto exchanges final yr. This required all exchanges working inside the metropolis to submit functions for licenses by Feb. 2024. The competitors is fierce, with 24 corporations vying for these coveted licenses.
Approval from Hong Kong’s prime monetary watchdog, the Securities and Futures Fee (SFC), is extremely sought-after, resulting from its popularity as a prestigious regulatory physique.
Leveraging this curiosity, ZA Financial institution CEO Ronald Iu Man-chung instructed SCMP in a current interview that the financial institution is actively getting ready to launch digital asset buying and selling companies for retail buyers. Nonetheless, particular particulars will likely be introduced solely after they finalize preparations, he stated.
ZA Financial institution didn’t return Cryptonews’ request for remark by press time.
Hong Kong Cracks Down on Unlicensed Digital Asset Exchanges
The financial institution’s foray into crypto comes amid a stricter regulatory panorama in Hong Kong. In February, town’s securities watchdog, the SFC, issued a warning to crypto buyers. It urged them to solely use licensed platforms and to double-check the registration standing of their chosen exchanges.
This warning coincides with a vital deadline for Hong Kong-based crypto exchanges. They’d till Feb. 29 to submit license functions, or face closure by Might 31. The SFC web site reinforces this level with a transparent message: unlicensed exchanges should stop operations by the top of Might.
Hong Kong Reboots Crypto Ambitions with ETFs, Regulatory Reform
The SFC has additionally suggested buyers to maneuver their digital property to platforms which are already regulated or within the means of acquiring a license. At present, solely OSL Digital Securities and Hash Blockchain maintain licenses for digital asset buying and selling in Hong Kong. Nonetheless, there are 24 candidates vying for approval, together with names like OKX, HKVAX, Bybit, and DFX Labs.
The SFC will even reveal an inventory of accepted and rejected functions for digital asset buying and selling platforms on a public registry by June 1, 2024.
The regulator additionally lately greenlit Asia’s first exchange-traded funds (ETFs) immediately tied to Bitcoin and Ether. These ETFs started buying and selling on the Hong Kong Inventory Alternate on Tuesday.
Hong Kong’s crypto standing took a success in mid-2022 resulting from a scarcity of clear rules and the rise of competitor hubs like Singapore and Dubai, identified for his or her crypto-friendly stance. Nonetheless, town is making a comeback.
ZA Financial institution’s Ronald Iu, highlights the financial institution’s dedication to supporting the digital asset sector, together with Web3 startups, as Hong Kong ramps up digital asset buying and selling by means of its new licensing program. This program, together with the lifting of the retail crypto buying and selling ban in 2023, alerts Hong Kong’s renewed push to turn into a significant crypto hub.