CZ says he expects more funds to move to Hong Kong CZ says he expects more funds to move to Hong Kong
Hong Kong virtual bank ZA Bank said it provide crypto and fiat currency transfers and account services for virtual asset service providers.
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Updated: Apr. 12, 2023 at 11:22 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Binance CEO Changpeng ‘CZ’ Zhao said more funds would move to Hong Kong as banks in the region support crypto.
Following recent banking troubles in the U.S., several crypto firms like Binance.US are looking for new banking partners. CZ believes that Hong Kong would be a choice destination for many of these firms.
Hong Kong’s ZA Bank offers crypto exchanges a lifeline
Hong Kong virtual bank ZA Bank said it would start providing crypto and fiat currency transfers and account services for virtual asset service providers.
In an April 12 Bloomberg report, the bank CEO Ronald Iu said it would offer token-to-fiat currency conversions for licensed exchanges. This means the bank will act as a settlement partner for exchanges — allowing customers to withdraw US Dollars, Yuan, and Hong Kong dollars.
Iu said:
“For the dozen of interested firms, big or small, from abroad and local, top of their concern is to have a path to make things work.”
Currently, only exchanges licensed in Hong Kong — OSL and HashKey — can use this service. The bank expects more exchanges to join in as they obtain licenses from the regulator.
Hong Kong’s crypto drive
Hong Kong is positioning itself as a crypto hub in Asia and has been making efforts in that direction. Its new crypto licensing regime is scheduled to come into effect by June.
Financial institutions in the city first got the green light to do business with the crypto sector in a circular jointly issued in January by the Hong Kong Securities and Futures Commission and the Hong Kong Monetary Authority.
Since then, the region has legalized crypto trading, opened a consultation service to help regulate crypto exchanges, and spared $50 million to accelerate Web3 development in Hong Kong.
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Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
