Hong Kong Unveils Relaxed Capital Rules for Crypto Banking

Hong Kong’s Monetary Authority (HKMA) is proposing to ease capital requirements for banks working with certain cryptocurrencies. These new rules, currently in consultation, would allow banks more flexibility when dealing with tokens linked to open blockchain networks, provided those projects demonstrate robust risk management. This approach aligns with Hong Kong’s plan to adopt international Basel Committee standards by 2026, while tailoring the guidelines to address permissionless blockchains—a key feature of the digital asset economy.