Bitcoin and Ethereum Trading Now Available to All Retail Investors

Previous



Next

Staff reporter

ZA Bank, a digital bank in Hong Kong, has begun offering services today which allows all retail investors to trade bitcoin and ethereum, coinciding with bitcoin’s approach to the US$100,000 mark (HK$780,000) following Donald Trump’s ascent to the US presidency.

This new offering is part of ZA’s collaboration with HashKey, which is one of the trio of licensed virtual asset trading platforms recognized by the Securities and Futures Commission.

ZA’s retail customers now have the capability to trade Bitcoin and ethereum round the clock, any day of the week through the bank, starting with a minimal transaction of US$70 or HK$600, according to Calvin Ng Chung-ho, the bank’s deputy chief executive.

ZA is currently waiving trading commissions until the end of June next year but will impose a 0.8 percent fee on the transaction value, which exceeds the rates of major online brokerages such as Futu’s 0.08 percent and Tiger’s 0.05 percent.

Post-June, the bank will increase its platform fee to 1.5 percent of the transaction value while setting the commission rate at US$1.99 or HK$15 per transaction.

The cryptocurrency trading services are available to all customers residing in Hong Kong, including those who are not permanent residents, Ng further stated.

Jeffrey Ding, the chief analyst at Hashkey, predicts a continuous rise in Bitcoin’s value, noting a 43 percent increase since Trump’s commanding election victory on November 5 and the nomination of Scott Bessent, a cryptocurrency-friendly hedge fund manager, as the potential Treasury secretary. Additionally, there are talks about establishing the first-ever cryptocurrency advisory role in the White House.

Yesterday at 8:13 pm in Hong Kong, Bitcoin saw a slight dip of 0.4 percent, falling to US$97,366 each after reaching an all-time high of US$99,655 the previous Friday.

Ding also cautioned that the inflation issues in the US might be challenging to overcome and could lead to either a financial or social crisis. He warned that Bitcoin might struggle to maintain its position in such scenarios, suggesting a potential black swan event next year.

Following Hong Kong’s declaration in 2022 to evolve into a virtual asset trading hub, SFC has provided licenses to only three platforms to date, namely Hashkey, OSL Exchange, and HKVAX.

Late in October, the SFC announced that the final roster of platform licensees moving from provisional to full licenses will be revealed by the year-end, hinting at the likelihood of more virtual asset exchange contenders joining the fray.

Moreover, there are 30 institutions that are permitted to offer virtual asset trading services with the help of their omnibus account setups. Currently, ZA Bank is the sole bank-based entity with the required licensing.

Navigating towards a future in virtual asset trading is a strategic move for ZA, as stated by Ng who also mentions the bank’s intentions to encompass a broader range of cryptocurrencies in the future, hoping such initiatives will pave the way for ZA to reach profitability sooner.