Hong Kong’s monetary regulator has announced draft plans that could ease capital requirements for banks holding certain cryptocurrencies. The Hong Kong Monetary Authority (HKMA) outlined the proposals in a consultation paper, reflecting its ambition to position the city as a major digital asset hub even as mainland China maintains a strict ban on crypto activity.

The new draft, known as CRP-1, details how digital assets will be treated under the Basel Committee on Banking Supervision’s global capital standards, set to apply locally in early 2026. Crypto assets built on permissionless blockchains may qualify for lower capital charges if issuers meet strict risk management standards.

Hong Kong has already implemented a licensing regime for crypto exchanges and stablecoin issuers, while also requiring licensed platforms to tighten custody practices for customer assets. The latest guidance underscores the city’s growing support for digital finance and its determination to differentiate itself from Beijing’s stance.

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