Binance CEO CZ Zhao predicts Hong Kong will see an influx of crypto funds as the region’s banks support digital assets.

As crypto firms in the US face banking troubles, many are seeking new partners, with Hong Kong emerging as a favored destination.

ZA Bank, a Hong Kong-based virtual bank, recently announced that it would offer token-to-fiat currency conversions for licensed exchanges, serving as a settlement partner for exchanges, and enabling customers to withdraw US dollars, Yuan, and Hong Kong dollars.

Currently, only two exchanges licensed in Hong Kong can use the service, but the bank expects more to join as they acquire licenses from regulators.

Hong Kong has been positioning itself as a crypto hub in Asia and has made several efforts to legalize and regulate crypto trading, including its new crypto licensing regime, which is set to take effect in June. The region has also allocated $50 million to accelerate Web3 development in Hong Kong.