Hong Kong's Central Bank Plans to Ease Rules on Banks' Crypto Holding: Report

The Hong Kong Monetary Authority (HKMA) has circulated plans for easing the capital requirements for banks holding cryptocurrencies, local financial news outlet Caixin reported on ￰0￱ central bank released a draft paper for public comment with a view to clarifying the guidance on capital regulation for crypto assets, which will be implemented early next ￰1￱ drafted guidelines focus on lowering bank capital requirements if issuers can take appropriate measures to prevent and respond to risks, according to the ￰2￱ Kong has emerged as one of the world's hubs for advancing the cryptocurrency industry through a more helpful regulatory ￰3￱ long-awaited guidance on stablecoins came into effect last month following a rush of applications from prospective issuers.

A switch to more lenient capital requirements for banks holding crypto could help cement Hong Kong's status further as a global leader for crypto ￰4￱ HKMA did not respond to CoinDesk's request for comment.