Hong Kong’s Central Financial institution Might Ease Capital Guidelines on Banks Holding Crypto: Report
The Hong Kong Financial Authority (HKMA) has circulated plans for alleviating the capital necessities for banks holding cryptocurrencies, native monetary information outlet Caixin reported on Wednesday.
The central financial institution launched a draft paper for public remark with a view to clarifying the steering on capital regulation for crypto property, which might be carried out early subsequent yr.
The drafted pointers deal with reducing financial institution capital necessities if issuers can take acceptable measures to stop and reply to dangers, in keeping with the report.
Hong Kong has emerged as one of many world’s hubs for advancing the cryptocurrency business by means of a extra useful regulatory regime. Its long-awaited steering on stablecoins got here into impact final month following a rush of functions from potential issuers.
A change to extra lenient capital necessities for banks holding crypto might assist cement Hong Kong’s standing additional as a world chief for crypto adoption.
The HKMA didn’t reply to CoinDesk’s request for remark.
