Hong Kong’s Central Bank Plans to Ease Rules on Banks’ Crypto Holding

Hong Kong's monetary authority is poised to relax capital requirements for banks holding digital assets, signaling a strategic push to solidify the city's position as a global crypto hub. The draft guidelines, open for public consultation until implementation in early 2025, incentivize risk mitigation measures with reduced capital burdens.

This regulatory pivot follows last month's stablecoin framework rollout, which triggered a surge of issuer applications. By recalibrating banking sector constraints, Hong Kong demonstrates institutional confidence in cryptocurrency maturation—a stark contrast to tightening Western regimes.

The MOVE potentially unlocks greater institutional participation across Bitcoin, Ethereum, and other major cryptocurrencies without explicit coin-specific provisions. Market infrastructure providers anticipate cascading effects on custody solutions and trading volumes across Asian exchanges.