The Hong Kong Monetary Authority (HKMA) has circulated plans for easing the capital requirements for banks holding cryptocurrencies, local financial news outlet RialCenter reported on Wednesday.
The central bank released a draft paper for public comment to clarify guidance on capital regulation for crypto assets, set to be implemented early next year.
The drafted guidelines focus on lowering bank capital requirements if issuers can adequately mitigate and respond to risks, according to the report.
Hong Kong has emerged as one of the world’s hubs for advancing the cryptocurrency industry through a more supportive regulatory regime. Its long-awaited guidance on stablecoins came into effect last month following a surge of applications from prospective issuers.
A switch to more lenient capital requirements for banks holding crypto could further solidify Hong Kong’s position as a global leader in crypto adoption.
The HKMA did not respond to CoinDesk’s request for comment.
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