Hong Kong's ZA Bank, a virtual bank, has launched its latest service – a crypto-to-fiat currency exchange. Launched as part of a pilot program, the service is "Web3-friendly" and driven by the bank's alternative Chief Executive Officer, Sin. Through the program, customers of licensed exchanges who transfer cryptocurrencies are able to withdraw HKD, RMB, and USD.

The city's attempts to position itself as a hub for the crypto sector have been reinforced with support from the Chinese state-owned banking sector, who have been engaging with crypto businesses in the area. Hong Kong's taxation policy for businesses, which include a rate of 8.25% on the first 2 million HKD ($254,930) of taxable profits, and 16.5% anything above this amount, is reported to be attractive to crypto companies.

However, Hong Kong is still likely to encounter competition as it attempts to establish itself as a crypto financial hub, with countries such as Dubai and Switzerland providing a more attractive rate of taxation. In Dubai, a fixed rate of 9% for businesses stands, and in Switzerland, the rate is 8.5%.

In conclusion, there is evidence to suggest that Hong Kong is making advances in its ambition to become a significant player in the crypto sector. With Chinese Bank involvement and the introduction of services such as the crypto-to-fiat exchange program, the city's position amongst the likes of Dubai and Switzerland appears to be on the rise.



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