The traditional wealth-management and private-banking sector—historically cautious about cryptocurrency—finds itself under growing pressure to deliver digital-asset services for affluent clients, especially in crypto-friendly hubs like Dubai, Switzerland and Singapore.
According to a survey by Swiss fintech firm Avaloq covering 3,851 investors and 456 wealth professionals in the UAE (February/March 2025), demand for digital assets in the region is unusually high: 39 % of wealthy clients hold crypto, yet only 20 % of those owners use a traditional wealth manager.
The UAE—known for its oil-rich family offices, favorable tax regimes and rapid embrace of digital finance—is also emerging as one of the world’s hottest crypto hubs. Regulatory clarity plays a key role: Dubai’s Virtual Assets Regulatory Authority (VARA), established in 2022, offers one of the first dedicated frameworks for virtual assets.
Survey data also reveals that 63 % of investors are considering switching wealth managers because their crypto-questions are going unanswered. “As crypto has evolved as an asset class, there has been a growing need among private-bank relationship managers to cater to clients who are basically not being served,” said Akash Anand, Head of Middle East & Africa at Avaloq.
Roadblocks & Opportunity
Why are many traditional institutions lagging? Crypto brings unique challenges: volatility, technological complexity, custody issues and private-key management all weigh heavily. Among UAE investors who do not hold crypto, the top reasons cited are market volatility (38 %), lack of knowledge (36 %), and distrust in exchanges (32 %).
At the same time, technology-service providers are capitalizing on the mis-match between client demand and legacy offering. For example, Avaloq has integrated crypto-custody solutions for its banking clients, partnering with providers such as Fireblocks and firms like Zurich Cantonal Bank and BBVA.
Changing Landscape in the Region
With investor appetite shifting toward digital-asset exposure, traditional wealth firms are taking note—and pricing in the opportunities. “There is a healthy pipeline of private banks and financial firms looking to either customise their core system with our crypto-custody tech or use the pre-figured platform,” Anand explained.
Beyond just crypto-holding, the UAE’s regulatory ecosystem is evolving fast: a new Banking Law (Federal Decree-Law No. 6 of 2025) expands the regulatory perimeter of the Central Bank of the UAE to include payment services using virtual assets and technology service providers.
Additionally, UAE tax and reporting regimes are aligning with international norms: the UAE Ministry of Finance has signed the Crypto‑Asset Reporting Framework (CARF) multilateral agreement and launched a public consultation, signaling its commitment to automatic exchange of crypto-asset data by 2028.
Why This Matters
As digital-asset millionaires proliferate globally—the number of global crypto-millionaires has reached 241,700, up 40% year-on-year—wealth managers who do not adapt risk being left behind. The survey ranks the UAE, Switzerland, Singapore, Hong Kong and the U.S. among the top jurisdictions for digital-asset investors.
The UAE’s combination of client demand, regulatory clarity and fintech infrastructure is accelerating a transformation in wealth management. Firms that build integrated crypto-asset services stand to capture the growth wave; those that stand still risk losing high-net-worth clients who are already switching.
