Hong Kong Monetary Authority (HKMA) Has circulated plans to facilitate capital requirements for banks that have cryptocurrencies, the local financial output Caixin reported on Wednesday.
The central bank released a draft paper for public comment to clarify the Capital Control Guidance for Crypto assets, which will be implemented early next year.
The draft guidelines focus on lowering bank capital requirements if issuers can take appropriate measures to prevent and respond to risks, according to the report.
Hong Kong has emerged as one of the world’s nodes to promote the cryptocurrency industry through a more useful regulatory regime. Its long awaited guidance on stableecoins came into force last month after a rush of applications from potential issuers.
A transition to more lenient capital requirements for banks holding crypto could help cement Hong Kong’s status further as a global leader of crypto recording.
HKMA did not respond to Coindesk’s request for comment.
