Hong Kong proposes to relax the requirements for banks that have cryptocurrencies

By Hannah Pérez

A change towards more relaxed capital requirements for banks that have cryptocurrencies could help consolidate Hong Kong status as a global digital assets.

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• The Central Bank of Hong Kong proposes to relax cryptocurrency standards for banks.
• Seek to align with the capital supervision standards of the Basel Committee.
• The change of norms could help Hong Kong even more consolidated as Crypto had.

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As he continues to advance towards a friendly regulatory environment for cryptocurrencies, Hong Kong would now be looking to reduce financial barriers for banks that wish to get involved with this kind of assets.

The Monetary Authority of Hong Kong (HKMA), the de facto central bank of the region, has issued a circular in which it proposes to relax the capital requirements for banks that have certain cryptocurrency assets, according to the local news media Caixin.

In a draft guidelines that was distributed among the actors in the banking sector, the HKMA proposes more flexible capital requirements for banks that handle cryptocurrencies.

This draft introduces a new supervisory policy module, CRP-1, which details how to classify digital assets under the capital standards of the Basel Banking Supervision Committee, which will come into force in Hong Kong in early 2026. Specifically, it raises the HKMA approach to implement basile rules within the Regulatory framework of Hong Kong.

The proposed guidelines focus on cryptocurrencies operating on networks Blockchain Without permission, it shares the publication, which could qualify for lower capital requirements if the issuing implement effective measures for risk management and mitigation.

Hong Kong is consolidated as I had crypto

Hong Kong is working to consolidate as a global hub for cryptocurrencies, with a favorable regulatory framework that includes licenses for Exchange of cryptocurrencies and emitters of Stablecoins.

The region, whose regulatory approach to the sector contrasts with the strict prohibitions of Continental China, has recently implemented regulations to improve the custody of customer assets on cryptocurrency commercial platforms.

The Hong Kong Securities and Future Commission issued the new guidelines last month, demanding that authorized platforms continue good security practices and strengthen the protection of customer assets of the growing cyber threats.

A change towards more indulgent capital requirements for banks that have cryptocurrencies could help consolidate Hong Kong’s status as a world leader in the adoption of cryptocurrencies.

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Article written with the help of AI, edited by Diariobitcoin

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