Hong Kong to Ease Cryptocurrency Regulations for Banks

HKMA plans to ease crypto capital requirements for banks.

The Hong Kong Monetary Authority (HKMA) has announced plans to ease capital requirements for local banks holding cryptocurrencies, as reported by Caixin.

The regulator has released a draft document for public consultation, aiming to clarify the guidelines set to be implemented at the beginning of 2026.

The recommendations focus on reducing capital requirements for banks if cryptocurrency issuers can take appropriate measures to prevent and respond to risks.

The document also outlines the classification procedure in accordance with global financial standards. Thus, the HKMA will implement Basel standards in Hong Kong’s banking sector.

The draft primarily addresses digital assets launched on public blockchains. According to the proposed rules, such cryptocurrencies could potentially face lower requirements.

Hong Kong continues to outpace mainland China in the adoption of cryptocurrency legislation. Since August 1, the jurisdiction has enforced stablecoin market regulations.

Meanwhile, China is focusing on national digital currencies. Beijing is considering allowing the use of yuan-backed “stablecoins.”

Earlier, journalists from The Economist suggested the potential failure of Chinese stablecoins, citing limited offshore asset supply and strict capital movement controls as reasons.