Hong Kong is taking another step toward becoming a global leader in digital finance. The Hong Kong Monetary Authority (HKMA) has released a draft proposal that could allow banks to hold certain cryptocurrencies with reduced capital requirements. This move signals a more progressive approach compared to mainland China’s ongoing ban on crypto activities.
CRP-1 Draft Aligns Crypto With Global Banking Standards
The proposed framework, known as CRP-1, outlines how digital assets will be treated under the Basel Committee on Banking Supervision’s global capital standards. These international standards are designed to ensure banks remain financially stable, and Hong Kong plans to adopt them locally starting in early 2026.
Under the new guidance, crypto assets built on permissionless blockchains—like Bitcoin or Ethereum—could qualify for lower capital charges, but only if the issuing entities meet strict risk management and governance requirements. This change could make it easier for banks to engage with digital assets while maintaining robust oversight.
Hong Kong Strengthens Its Position as a Crypto Hub
Hong Kong has already implemented a licensing regime for crypto exchanges and stablecoin issuers. The city also requires licensed platforms to enforce tight custody measures to protect customer funds. The release of CRP-1 highlights the city’s commitment to responsible innovation and further separates its stance from Beijing’s crypto ban.
This regulatory clarity is likely to attract more institutional investors and fintech companies, as it offers a more accommodating environment for digital assets while keeping investor protection and risk controls in place.
Hong Kong’s efforts are part of a broader strategy to become a leading destination for digital finance in Asia. By aligning with international standards while encouraging innovation, the city is positioning itself as a key player in the future of blockchain and crypto banking.
