Hong Kong Moves Toward Lighter Bank Rules for Crypto Holdings

Hong Kong's monetary authority is softening its stance on digital assets, proposing draft guidelines that would reduce capital requirements for banks holding certain cryptocurrencies. The move underscores the city's ambition to cement its position as a leading crypto hub in Asia.

The HKMA's consultation paper introduces a new supervisory framework, CRP-1, aligning with Basel Committee standards set to take effect in 2026. The guidelines focus on classifying assets on permissionless blockchains, suggesting lower capital buffers for tokens with robust risk controls.

By adapting global rules to its local context, Hong Kong is creating a clearer regulatory pathway for banks to engage with crypto—a strategic step toward fostering innovation while maintaining oversight.