Catenaa, Friday, September 12, 2025- Hong Kong’s central banking authority has proposed easing capital requirements for banks holding cryptocurrency assets, a move seen as reinforcing the city’s ambition to be a leading digital asset hub.
The Hong Kong Monetary Authority circulated draft guidance this week, outlining how crypto assets should be treated under the Basel Committee on Banking Supervision’s global standards, due for adoption in early 2026, financial outlet Caixin reported.
The consultation focuses on permissionless blockchain assets. Under the proposal, banks could apply lower capital charges if issuers implement effective risk management and mitigation measures.
Hong Kong has been positioning itself as a bridge between global crypto markets and China, which maintains a strict ban on trading and mining. The city has already introduced licensing regimes for exchanges and stablecoin issuers.
Last month, the Securities and Futures Commission required licensed trading platforms to tighten client asset custody standards.
Analysts say the latest proposal could boost institutional participation by lowering costs for banks engaging with vetted crypto assets, though final rules will hinge on industry feedback and international regulatory alignment.
The HKMA’s policy paper, CRP-1, signals a willingness to adapt global capital frameworks to local conditions, balancing prudence with innovation. The move comes amid increasing competition among financial centers to attract crypto business while managing risks tied to volatility and custody.
