Hong Kong Streamlines Crypto Regulations, Lowering Capital Demands

Hong Kong is taking steps to loosen its grip on cryptocurrency regulation by reducing capital requirements for banks dealing with digital assets. This move aligns with global standards set by the Basel Committee on Banking Supervision and aims to be fully implemented in 2026. The Hong Kong Monetary Authority (HKMA) has proposed a draft document titled ‘CRP-1’ that targets cryptocurrencies operating on unlicensed blockchains. It offers reduced capital burden for banks provided they implement stringent risk management and oversight measures, according to the draft.