September 12, 2025
By Anjali Kochhar
In the race to become the world’s next digital finance capital, Hong Kong has just made a bold move. Regulators are preparing to ease strict capital rules for banks that hold licensed crypto assets, sending a clear signal that the city wants to lead, not lag, in the global Web3 era.
The Hong Kong Monetary Authority (HKMA), which acts as the city’s de facto central bank, has rolled out a draft policy called CRP-1. This proposal sets the stage for a friendlier capital regime, allowing banks to assign lower risk weights to crypto assets that meet compliance and licensing standards. In simple terms, banks will not have to lock up as much money as a safety buffer when holding certain digital assets. That means cheaper costs, more flexibility, and a stronger incentive to engage with the crypto market.
This is no small adjustment. It is Hong Kong aligning itself with the Basel Committee’s new global crypto capital standards that come into effect in 2026. The rules aim to walk a fine line: protecting banks from volatility and fraud while making sure innovation is not strangled by outdated regulations.
The draft also introduces a system that classifies digital assets into categories based on risk. Stablecoins and regulated tokens may be treated more leniently, while highly speculative or unregulated coins will continue to face heavier capital requirements. Enhanced disclosure, strict reporting, and operational safeguards are also part of the package.
Reactions from the banking sector have been cautiously optimistic. Financial institutions see this as a chance to build crypto services with more confidence while still operating under clear regulatory boundaries. Analysts believe the move could accelerate mainstream adoption of blockchain-based products in areas such as payments, wealth management, and cross-border settlements.
Still, questions remain. Which tokens will qualify for favorable treatment? How much oversight will regulators demand? And will banks, often slow movers in crypto, be willing to take advantage of the new framework?
At its core, Hong Kong’s shift is more than a regulatory tweak. It is a message to the world that the city is betting on digital finance as part of its future. If the balance between safety and innovation works out, Hong Kong could strengthen its position as a global hub for crypto and banking alike.
About the author
Anjali Kochhar covers cryptocurrency and blockchain stories in India as well as globally. Having been in the field of media and journalism for over four years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
