Hong Kong's central bank has proposed easing capital requirements for banks that hold certain crypto assets, according to a local publication.
The new draft rules, outlined in a consultation paper, introduce a module called CRP-1 that details how to classify cryptocurrencies under global Basel standards.
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The proposal suggests that cryptocurrencies built on permissionless blockchains could qualify for lower capital requirements if issuers have robust risk controls in place.
This move reinforces Hong Kong's ambition to become a leading cryptocurrency hub, in stark contrast to the ban in place in mainland China. The rules are expected to come into effect in early 2026.