The Hong Kong Monetary Authority (HKMA) has circulated plans for relieving 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 belongings, which shall be applied early subsequent yr.
The drafted pointers focus on decreasing financial institution capital necessities if issuers can take applicable measures to stop and reply to dangers, in response to the report.
Hong Kong has emerged as one of many world’s hubs for advancing the cryptocurrency trade 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 may 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.
