Hong Kong Monetary Authority (HKMA) Local financial news outlet Caixin is circulating plans to ease capital requirements for banks that hold cryptocurrency, reported by local financial news outlet Caixin on Wednesday.
The central bank has released a draft paper of public comments to clarify guidance on cryptocurrency capital regulations that will be implemented early next year.
The drafted guidelines focus on lowering bank capital requirements if the issuer is able to take appropriate measures to prevent and respond to risks, according to the report.
Hong Kong has emerged as one of the world’s hubs for moving the cryptocurrency industry forward through a more useful regulatory regime. The much-anticipated guidance on Stablecoins came into effect last month after a surge in future applications for issuance.
A switch to more generous capital requirements for crypto-holding banks could help further strengthen Hong Kong’s position as a global leader in crypto adoption.
HKMA did not respond to Coindesk’s request for comment.
