HKMA Proposal Paves Way for Easier Bank Crypto Integration

A new consultation from the Hong Kong Monetary Authority (HKMA) could make it significantly more capital-efficient for banks to hold digital assets.

The proposed “CRP-1” module outlines how banks can apply lower capital requirements to certain crypto assets, specifically those on permissionless blockchains with effective risk mitigation.

This regulatory clarity is a major step for institutional adoption, reducing a key barrier to entry for traditional banks looking to engage with the crypto sector.

The proposal underscores Hong Kong’s commitment to building a structured and welcoming environment for digital asset businesses, a marked contrast to its mainland neighbor.