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Hong Kong Monetary Authority Proposes Capital Rules for Banks Holding Crypto Assets

The HKMA's new regulatory guidelines, effective from January 2026, will classify crypto assets under Basel’s capital rules, separating stablecoins with mechanisms from unbacked tokens like Bitcoin and Ethereum.

BTC
ETH

Summary

The Hong Kong Monetary Authority (HKMA) has outlined a new regulatory policy that will categorize crypto assets according to the Basel Capital Rules starting January 2026. Stablecoins with effective stabilization mechanisms will be classified separately from unbacked assets like Bitcoin and Ethereum. The policy aims to align Hong Kong’s regulatory framework with global standards for crypto asset risk management.

Terms & Concepts
  • Group 1 Assets: Includes tokenized traditional assets and stablecoins with effective stabilization mechanisms, recognized under Basel capital standards.
  • Group 2 Assets: Unbacked cryptocurrencies such as Bitcoin and Ethereum, along with non-compliant stablecoins and tokenized assets, subject to stricter capital treatment.
  • Basel Committee’s 2026 Bank Capital Standards: International banking regulations set to take effect in 2026, establishing capital requirements for banks’ exposure to crypto assets.