ZA Bank, a virtual bank in Hong Kong, has introduced a new ‘Foreign Exchange Time Deposit’ option, allowing customers to place deposits in either USD or CNY with interest rates reaching up to 20% per annum. The service is available through the ZA Bank app and offers time deposit options for periods ranging from 7 days to 3 months. For USD deposits, the 7-day interest rate is 13%, with 6.8% for 1 month and 5% for 3 months. The applicable deposit range is from US$ 5 to US$ 1,000,000. For CNY, the 7-day rate is 20%, with 6.3% for 1…

Banks need to go beyond just being digital, join experts from GFT, AWS, Thought Machine and Malaysia’s top banks to learn why banking needs to be invisible. Speakers: Noor Farilla Abdullah, Group Chief Digital Officer of Bank Islam Melvin Ooi, CEO, YTL-Sea Digital Bank Project Izwan Ismail, Director – Head, Human Centered Design, CIMB Khuan Yew Lee, Executive Director – Head of Product, Save & Spend at GXBank. • Fadrizul Hasani, Chief Technology Officer, GXbank Pai Li Gan, Group Chief Consumer Banking Officer, Alliance Bank Jay Khairil Jeremy Abdullah, Chief Executive, Bank Simpanan Nasional Zee King Lim, Head of UX/UI,…

Three Japanese megabanks are involved in a cross-border payments initiative that aims to use stablecoins and SWIFT’s application programming interface (API) framework to enable fast, cost-effective, and 24/7 international transfers. The initiative, called Project Pax, is a joint effort between Japanese companies Progmat and Datachain. It aims to create a cross-border stablecoin transfer platform that addresses key challenges in international payments, such as high costs, slow processing speeds, limited accessibility, and lack of transparency. Pilot testing for Project Pax is set to commence this fall, and the three Japanese banks, namely Mitsubishi UFJ Bank, Sumitomo Mitsui Banking Corporation, and Mizuho…

Qupital, a Hong Kong-based fintech firm specialising in supply chain financing for e-commerce, has secured funding from Lending Ark. The sum was not disclosed. Lending Ark manages over US$1 billion in asset-backed credit investments across Asia. This mezzanine financing aims to strengthen Qupital’s e-commerce receivables-backed securitisation facility, already supported by HSBC and Citi. The funding will help Qupital offer more flexible and cost-effective financing options to cross-border e-commerce merchants. Qupital primarily serves merchants in China who sell to the U.S. and Europe on platforms like Amazon, eBay, Shopee, and Lazada, as well as domestic merchants on JD.com, Tmall, and Pinduoduo.…

The Hong Kong Monetary Authority (HKMA) today announced the commencement of Phase 2 of the e-HKD Pilot Programme. The second phase aims to explore innovative use cases for digital money, including e-HKD and tokenised deposits. This phase is part of Project e-HKD+, an expanded initiative that reflects the HKMA’s broader focus on the evolving digital money ecosystem. Under Phase 2, 11 groups of firms have been selected to test use cases such as cross-border payments, tokenisation for asset investment, and settlement of tokenised assets. Payment giant Visa and ANZ will explore how Australian corporates can invest in Hong Kong-based funds…

The Hong Kong Monetary Authority (HKMA) and digital technology hub Cyberport have opened applications for its Generative Artificial Intelligence (Gen AI) Sandbox initiative, announced in August 2024. This initiative provides a controlled environment for authorised institutions to experiment with AI-powered solutions in real-world banking scenarios. Participants in the sandbox can utilise Cyberport’s computing resources and receive supervisory feedback from the HKMA throughout the trial process. The regulator plans to use the insights gained from these trials to share best practices and potentially develop further guidance on AI adoption in the banking sector. The HKMA encourages AIs to explore various AI…

Global verification provider Sumsub has announced a new integration to help its crypto and fintech clients meet compliance requirements in Japan and Taiwan. By integrating its Travel Rule solution with the Sygna Travel Rule protocol, Sumsub customers can now communicate with Virtual Asset Service Providers (VASPs) in the Sygna ecosystem. This partnership expands the reach of Sumsub’s Travel Rule solution, bringing the total number of integrated protocols to five. It also allows Sygna to grow its network of VASPs. Both companies aim to enable fast and secure data exchange between VASPs, ensuring they adhere to the Travel Rule guidelines set…

ZA Bank, a virtual bank in Hong Kong, plans to launch a “next-gen-ready” wealth product as part of its future offerings, according to Alternate Chief Executive Calvin Ng. It is the first digital bank in Hong Kong to achieve monthly profitability four years after launching its operations. The other seven virtual banks operating in Hong Kong include Airstar Bank, Ant Bank, Fusion Bank, Livi Bank, Mox Bank, Ping An OneConnect Bank, and WeLab Bank. ZA Bank reported a 46% year-on-year increase in net revenue, supported by steady growth and improved operational efficiency. The bank continues to expand its services, now…

Hong Kong is set to unveil its inaugural policy statement on the use of artificial intelligence (AI) within the financial industry. This could accelerate AI adoption across sectors such as investment banking, trading, and cryptocurrencies, according to a report by Bloomberg. The Financial Services and Treasury Bureau is currently drafting the guidelines, which are expected to cover ethical considerations and fundamental principles for AI’s application in finance. Industry stakeholders have been consulted during the process, and feedback is still being gathered as the final details of the policy are yet to be determined. Although specifics are still under review, the…

The Hong Kong Monetary Authority (HKMA) and the Dubai Financial Services Authority (DFSA) have signed a MoU to deepen their strategic partnership and strengthen collaboration on sustainable finance. The agreement will facilitate cross-border dialogue, joint research, and shared efforts to address climate finance challenges. Formalised during their inaugural Joint Climate Finance Conference on 16 September in Hong Kong, this event marked the first of its kind between the two authorities. The conference, which brought together over 240 participants from financial institutions, industry associations, and international organisations, focused on the theme ‘Building a Net-Zero Asia – Middle East Corridor.’ Discussions addressed…

OneDegree Group has unveiled MAMORI, a Web 3.0 risk intelligence platform powered by artificial intelligence (AI). MAMORI aims to address the escalating risk management and security needs of the decentralised world, providing a comprehensive solution to navigate the complexities of the Web 3.0 ecosystem. The MAMORI platform empowers key stakeholders, from regulators and exchanges to crypto investors, with critical insights to effectively manage risks. By analysing and identifying potential threats, MAMORI helps users proactively address emerging risks and safeguard against unforeseen crypto events. Key features of MAMORI include detection of fake announcements and malicious communications, monitoring for rug pulls and…

The Hong Kong Monetary Authority (HKMA) is taking steps to support the use of artificial intelligence (AI) in enhancing the monitoring of money laundering and terrorist financing (ML/TF) risks within authorised institutions. A dedicated team, backed by an external consultant, will offer supervisory feedback and technical guidance to help institutions implement AI-driven monitoring processes through the HKMA’s existing Fintech Supervisory Sandbox and Chatroom. The HKMA had previously shared a list of high-level principles on AI with authorised institutions in 2019. Given the rising complexity of money laundering activities and the growing use of mule account networks, the HKMA encourages institutions…

Recognizing the need to promote innovation and boost competition in the financial services industry, Taiwan’s financial regulators have introduced a number of regulatory changes to foster fintech development. In 2019, the island’s Financial Supervisory Commission (FSC) issued its first virtual banking licenses to three consortia led by Taiwan and Japanese investors in a move aimed at encouraging financial innovation and deepening financial inclusion. At around the same time, the regulator implemented the first phase of its open banking strategy, opening up public information, including mortgage interest rates, fixed deposit interest rates, currency exchange rates, and credit card products. These developments…

The newly formed joint taskforce on SME Lending held its first meeting, focusing on addressing common issues faced by SMEs in accessing and maintaining bank financing. Co-chaired by Arthur Yuen, Deputy Chief Executive of the Hong Kong Monetary Authority (HKMA), and Luanne Lim, Chairperson of the Hong Kong Association of Banks (HKAB), the meeting brought together representatives from the HKMA, HKAB, and 14 banks that are actively involved in SME lending to discuss practical solutions. A key takeaway from the meeting was the participating banks’ commitment to maintaining their current risk appetite for SME financing and ensuring the ongoing implementation…

Alibaba Group Holding is introducing Tencent’s WeChat Pay as a payment option on its Taobao and Tmall platforms, according to a Bloomberg report. The move gives millions of users access to China’s most popular online payment method, WeChat Pay, marking a shift from Alibaba’s traditional reliance on its own Alipay service, created by affiliate Ant Group Co. This development coincides with a slowing consumer market and the growing dominance of WeChat, which has evolved into a crucial e-commerce platform. Alibaba’s decision also follows a prolonged regulatory crackdown aimed at reducing monopolistic practices in the tech sector. Last week, authorities signaled…

OSL, a licensed digital asset platform and subsidiary of OSL Group, has named Jack Tan, also known as Jack Derong, as its new Chief Marketing Officer (CMO). The appointment comes as part of OSL’s ongoing global expansion efforts aimed at strengthening its position in the digital asset space. Jack brings extensive experience from his previous role as the Global Head of Marketing at Futu, where he played a key role in driving growth across the Asia-Pacific region. At OSL, he will focus on increasing the company’s global brand presence and spearheading user acquisition in new markets. Kevin Cui, CEO of…

North Korea is escalating its cyberattacks on the crypto industry, employing sophisticated social engineering tactics to deceive employees and gain access to valuable digital assets, the Federal Bureau of Investigation (FBI) has warned. These state-sponsored hackers are meticulously researching their targets, often using personal information gleaned from social media to craft highly convincing fake scenarios. This personal information can include details about events the target has attended, their personal relationships, and their affiliations. These scenarios may involve lucrative job offers, investment opportunities, or even requests for assistance from seemingly familiar contacts. The hackers are fluent in English and well-versed in…

ZA Bank has become the first of Hong Kong’s eight virtual banks to achieve monthly profitability, nearly four years after it began operations. The bank, a joint venture between ZhongAn Online P&C Insurance and Sinolink Group, was among the first to receive a virtual banking license from the Hong Kong Monetary Authority (HKMA) in 2020. The other virtual banks operating in Hong Kong include Airstar Bank, Ant Bank, Fusion Bank, Livi Bank, Mox Bank, Ping An OneConnect Bank, and WeLab Bank. The bank’s first monthly profit was driven by a notable increase in deposits, along with higher fee income from…

The Hong Kong Securities and Futures Commission (SFC) has accepted a virtual asset license application from Hong Kong Digital Asset Xchange Limited (HKDAEx) despite the application being submitted after the 31 May deadline. According to the SFC website, the license application was submitted on 27 August 2024. HKDAEx is a member of the Hong Kong Financial Asset Exchange Group. The group is comprised of several entities, including Hong Kong Financial Asset Exchange and Clearing Ltd, HKFAEx Group Ltd, and China International Assets and Equity of Artworks Exchange Limited. Established in Hong Kong, HKDAEx provides exchange and clearing services for global…

The Hong Kong Monetary Authority (HKMA) has imposed a HK$875,000 fine on WeChat Pay Hong Kong for failing to meet anti-money laundering and counter-financing of terrorism (AML/CFT) standards. The HKMA’s investigation, which began after a self-report from WeChat Pay, found that the company did not have adequate systems in place between August 2016 and October 2021. These shortcomings affected its ability to conduct customer due diligence reviews when needed and to apply enhanced measures in high-risk situations involving money laundering and terrorist financing. The shortcomings were specifically related to the requirements set out in the Payment Systems and Stored Value…