Hong Kong Embraces Crypto Flexibility: Capital Requirement Relaxation on the Horizon
Hong Kong's monetary authority is poised to ease capital requirements for banks dealing in cryptocurrencies, signaling a progressive shift in regulatory stance. The HKMA's draft policy, CRP-1, aligns with Basel standards while offering leeway for assets on unauthorized blockchains—provided issuers enforce robust risk controls.
This MOVE follows a consultation period with local banks, aiming to finalize rules by 2026. The adjustment could significantly lower capital burdens for institutions holding crypto, fostering greater participation in digital asset markets.
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