Hong Kong relaxes capital regulations for Crypto: Paving the way for traditional finance

The Hong Kong Monetary Authority (#HKMA ) has made a positive move by proposing to reduce capital requirements for banks holding certain types of crypto assets. This is an important step, showing that Hong Kong is working to integrate crypto into the traditional financial system and affirming its position as a leading financial center.

A transparent legal framework to promote development

The new draft by the HKMA aligns with global capital standards set by the Basel Committee, expected to be implemented in Hong Kong by early 2026. This proposal focuses on reducing capital requirements for crypto assets on public blockchains, as long as issuers have effective risk management measures in place. This will provide a significant incentive for banks and financial institutions to participate in the crypto market, bringing in a massive source of capital and professionalism to the industry. #HongKong

Hong Kong affirms its pioneering position

This decision is a clear testament to Hong Kong's vision of creating a transparent legal environment that fosters innovation and growth. When banks are allowed to hold crypto with lower capital requirements, they will be able to offer a wider range of crypto services, from custody to trading. This will not only help the crypto market in Hong Kong grow but also strengthen the confidence of investors worldwide, ushering in a new era where traditional finance and crypto coexist. #anhbacong