ZA Bank, a new digital bank offering cryptocurrency trading, is reportedly considering setting up physical branches in Hong Kong in accordance with new HKMA rules.

Hong KongDigital banks in China are exploring the possibility of opening physical branches as the local regulator has introduced new rules allowing them to do so, the South China Morning Post reported. I've learned.

According to the report, cryptocurrency-friendly WeLab, Mox Bank, and ZA Bank are among the banks considering setting up brick-and-mortar locations. The Hong Kong Monetary Authority's new rule allows digital banks to operate a limited number of physical branches.

ZA Bank, the city's largest digital bank, has supported the introduction of physical branches, with a bank spokesperson telling SCMP that face-to-face interactions would enhance the customer experience and help resolve complex issues more efficiently.

The move comes after Hong Kong lawmaker Johnny Ng Keat Chung called for more support for cryptocurrency companies in the city, especially as Web3 startups struggle to access financial services.

Cryptocurrency startups in Hong Kong I encountered difficulties Opening bank accounts due to strict regulations and cautious attitude of traditional banks towards cryptocurrencies. A report issued by the Hong Kong Monetary Authority indicated that of the more than 120 web3 companies established in Hong Kong in 2022, about 95% of them had trouble opening accounts in virtual banks.

In addition, 70% of these companies required shareholders or directors to visit Hong Kong several times, 60% had to hold fixed deposits, and 54% took more than six months to open an account. Nearly 20% took between two and five months, while 3% were rejected outright.