Digital Banks Gain Ground as 70% of Hong Kong Crypto Traders Move Away from Exchanges
A recent survey by ZA Bank reveals a significant shift in Hong Kong’s crypto landscape, with nearly 70% of local crypto traders now opting for digital banks instead of traditional exchanges. The results highlight a growing preference for more integrated and convenient ways to manage digital assets.
According to the survey, investors are drawn to digital banks because they allow users to trade cryptocurrencies directly from their bank deposits. This all-in-one approach—managing both fiat and crypto through a single platform—has become increasingly attractive to users seeking simplicity and efficiency.
In a statement, ZA Bank noted that this trend marks a clear evolution in trading behavior. Digital banking platforms offer streamlined access to financial services, eliminating the need to switch between multiple applications or platforms.
Calvin Ng, CEO of ZA Bank, commented, “We’re seeing crypto become a mainstream component of people’s investment portfolios. Our goal is to provide a seamless platform where users can manage everything—from cryptocurrencies to stocks and funds—in one place.”
Rising Demand for Regulated and Flexible Platforms
The survey also found that regulatory clarity is a major factor for investor confidence. Nearly 70% of respondents believe that clearer cryptocurrency rules will boost wider adoption, while more than 81% expressed interest in crypto-to-crypto transfer features through digital banks.
A separate study by the Hong Kong University of Science and Technology, conducted in March 2025, showed that 25% of adults in the region intend to hold crypto assets—up 6% from 2023.
Despite lingering concerns stemming from high-profile collapses like FTX in 2022, the appetite for crypto remains strong. The study found that approximately 20% more investors prefer storing their digital assets on licensed platforms, showing a clear shift toward regulated and secure environments.
Bitcoin Remains King as Hong Kong Embraces Digital Finance Shift
Bitcoin continues to dominate the crypto scene in Hong Kong, with over 80% of surveyed investors showing interest in the flagship cryptocurrency—an increase of 7% from previous data. In contrast, enthusiasm for NFTs has dropped by 11%, signaling a shift in investor focus within the digital asset space.
However, the survey also revealed a gap in public awareness regarding newer financial technologies. Around 72% of participants admitted they had little or no understanding of central bank digital currencies (CBDCs). Awareness of the local e-HKD initiative was similarly low, with 65% unfamiliar with the project, and 81% had not heard of tokenized deposit systems.
Hong Kong Accelerates Its Digital Finance Ambitions
Despite the knowledge gap, Hong Kong is pressing forward with its digital finance strategy. Regulators have introduced new policies allowing companies to issue tokenized products, and licenses are now being granted to exchanges that meet compliance standards.
In August 2024, the Hong Kong Monetary Authority launched the “Project Ensemble Sandbox”—a pilot program to test the use of tokenized money in interbank transactions and digital asset settlements. This project is a key step in the city’s broader goal to establish itself as a global hub for digital finance.
As digital banks become the go-to platforms for crypto trading, the boundary between traditional financial systems and digital assets continues to blur—reshaping how investors in Hong Kong interact with their money.
