Hong Kong Eases Crypto Rules for Banks, Attracting Institutional Investors

Hong Kong’s Monetary Authority (HKMA) has proposed easing capital rules for banks dealing with crypto assets by 2026. This initiative aligns with updated Basel Committee on Banking Supervision (BCBS) global standards and will impact financial institutions and stablecoin projects. The proposal focuses on tokenized traditional assets like bond tokens, which will receive favorable capital treatment. Stablecoins with effective stabilization mechanisms will also benefit from these changes. Conversely, unbacked cryptocurrencies such as Bitcoin and Ethereum face stricter capital requirements. This move positions Hong Kong as a hub for digital asset activities.