Hong Kong Monetary Authority Proposes Easing Capital Requirements for Crypto Holdings
The Hong Kong Monetary Authority (HKMA) plans to ease capital requirements for banks holding cryptocurrencies, as reported by Caixin. Key points include:
- A draft paper has been released for public comment, aiming to clarify capital regulation for crypto assets.
- The guidelines will lower bank capital requirements if issuers implement risk prevention measures.
- Hong Kong is positioning itself as a hub for the cryptocurrency industry through favorable regulations.
- Recent guidance on stablecoins took effect last month, attracting numerous applications from issuers.
- Easing capital requirements could further establish Hong Kong's leadership in crypto adoption.
The HKMA has not commented on this matter.