The monetary authority of Hong Kong (HKMA) Distributed plans to soften the capital requirements for banks holding cryptocurrencies, the local financial media reported on Wednesday.
The central bank has published a document of document for public comments in order to clarify the directives on capital regulations for cryptographic assets, which will be implemented at the beginning of next year.
The directives drawn up focuses on reducing banking capital requirements if issuers can take appropriate measures to prevent and respond to risks, according to the report.
Hong Kong has become one of the world’s hubs to advance the cryptocurrency industry thanks to a more useful regulatory regime. Its long -awaited guidelines on the stablecoins entered into force last month following a rush of requests for potential transmitters.
A transition to more lenient capital requirements for banks holding crypto could help cement the Hong Kong status as a world leader for the adoption of cryptography.
The HKMA did not respond to the request for comments from Coindesk.
