The Hong Kong Monetary Authority (HKMA) is considering easing capital requirements for banks holding cryptocurrencies, as indicated in a recently circulated draft paper for public comment. This draft outlines potential reductions in the capital requirements for banks if they can demonstrate appropriate risk mitigation and response measures. The proposed guidelines aim to clarify capital regulation for crypto assets and would be implemented in early 2026. Hong Kong is positioning itself as a global leader in cryptocurrency regulation, following a surge in applications from potential issuers. Adjusting these capital requirements could further enhance the city's status in the crypto industry. The HKMA has not yet provided any comments regarding these developments.

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