Crypto Market News: 70% of Hong Kong Crypto Traders Ditch Exchanges for E-Banks

A recent survey by ZA Bank shows that nearly 70% of crypto traders in Hong Kong now choose digital banks over traditional crypto exchanges. The findings point to a shift in how investors in the city manage and trade digital assets.

The survey revealed that many investors favor digital banks because they can trade crypto directly using their bank deposits. Managing funds and crypto through a single account has become a preferred option for users looking for a more streamlined process.

ZA Bank said in a statement that this trend shows a new direction in trading habits. The digital banking model appeals to investors seeking faster and simpler access to financial services without switching between platforms.

ZA Bank’s CEO, Calvin Ng, said, “We’re seeing more people view crypto as a normal part of their portfolios. Our aim is to build a platform where users can manage everything in one place—whether it’s crypto, stocks, or funds.”

Investor Confidence in Regulated Platforms

The survey also found that nearly 70% of respondents believe that clearer rules around cryptocurrency will encourage more people to join the market. A majority also said they would like more trading flexibility. Over 81% said they want digital banks to support crypto-to-crypto transfers, which would make it easier to move between assets.

A separate study conducted by the Hong Kong University of Science and Technology in March 2025 found that 25% of adults in the region plan to hold cryptocurrencies. This marks a 6% rise from a previous survey taken in 2023.

Despite concerns around past market failures, such as the collapse of FTX in 2022, many respondents said they are more comfortable using exchanges that are licensed. The study showed that around 20% more investors trust regulated platforms over unregulated ones when it comes to storing their funds.

Bitcoin Still Leads the Market

Bitcoin remains the most favored cryptocurrency among Hong Kong investors. More than 80% of those surveyed said they were interested in Bitcoin, a 7% rise compared to earlier results. In contrast, interest in NFTs has dropped by 11%, reflecting shifting trends in digital assets.

The survey pointed out that awareness of emerging digital financial tools remains low among Hong Kong residents. About 72% of participants said they had little or no knowledge of central bank-issued digital currencies. Meanwhile, 65% were unfamiliar with the local e-HKD project, and 81% had not heard of tokenized deposit systems.

Hong Kong Advances Digital Finance Goals

Hong Kong’s authorities continue to push for growth in the crypto sector by supporting a clear framework for businesses and investors. New policies now allow companies to offer tokenized products, and licenses are being issued to compliant exchanges.

The Hong Kong Monetary Authority introduced the “Project Ensemble Sandbox” in August 2024 as a trial platform to explore how tokenized money can be used in bank-to-bank payments and transactions involving digital assets. The initiative forms part of Hong Kong’s broader efforts to strengthen its position in the digital finance space.

As more users adopt digital banks for crypto trading, the line between traditional finance and digital assets continues to narrow.