Hardware manufacturer says that zd1201 devices support WPA. It would be nice that this support could be added to zd1201 linux driver, so it can be used with WPA enabled APs and, as it can also act as an AP, enable WPA on it (though something like hostapd userspace software). Thanks for your wok
Without the specs for the device, there is not much we can do about adding this kind of support, sorry. I suggest contacting the original author of this driver to see if they are willing to add this kind of feature.