Hong Kong Monetary Authority Releases Crypto Asset Regulatory Policy Manual, Plans to Implement Basel Framework Starting 2026

The Hong Kong Monetary Authority (HKMA) has issued a revised regulatory policy manual, clarifying the classification of crypto assets under the Basel capital rules. It plans to fully implement the Basel framework by revising capital, disclosure, and large exposure rules starting January 1, 2026. The manual categorizes crypto assets into two types: the first category includes tokens linked to traditional assets and stablecoins with effective stabilization mechanisms, which will receive regulatory treatment similar to traditional assets; the second category covers unsecured tokens (such as Bitcoin and Ethereum) as well as non-qualifying tokenized assets and stablecoins, which will face stricter capital requirements. Stablecoins licensed under Hong Kong's "Stablecoin Ordinance" are considered lower-risk assets. The industry may submit feedback by October 10.