An increasing number of investors in Hong Kong are opting for digital banks instead of crypto exchanges, driven by the convenience of one-stop solutions, a recent survey indicates.
A study conducted by ZA Bank reveals that almost 70% of cryptocurrency investors in Hong Kong prefer utilizing digital banks for trading.
According to a press release from ZA Bank, the primary reasons for this preference include the ability to trade directly using bank deposits and the simplicity of managing a single account. The bank suggests that these findings reflect a shift in the way individuals in Hong Kong engage with crypto trading.
“As interest in virtual assets continues to rise, cryptocurrencies are increasingly regarded as a vital addition to diversified portfolios. In the future, we aim to broaden our comprehensive digital investment platform to encompass a wide array of asset classes, including cryptocurrencies, funds, and stocks.”
Calvin Ng, CEO of ZA Bank.
ZA Bank noted that this trend signifies the emergence of digital banks as a new entry point for many investors into the crypto landscape, offering user-friendly applications alongside regulations aimed at ensuring security.
The survey revealed that nearly 70% of participants believe that greater regulatory clarity in the cryptocurrency sector will attract more investors. Additionally, over 81% expressed a desire for enhanced features, particularly requesting support for crypto-in-crypto-out transactions to improve asset flexibility.
Anticipating Regulatory Clarity
In late March, a study from the Hong Kong University of Science and Technology found that a quarter of residents intend to hold cryptocurrencies, marking a 6% increase since a survey conducted in September 2023. Despite the fallout from the FTX collapse in November 2022, many participants maintained confidence in using regulated exchanges.
The survey highlighted that residents are considerably more inclined to engage with crypto exchanges that are regulated, with 20% more respondents indicating they would feel secure depositing funds into these platforms compared to unregulated ones.