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Hong Kong Moves Toward Crypto Integration with Basel-Aligned Capital Framework
Hong Kong is taking another step toward solidifying its role as a global crypto hub, unveiling plans for more flexible capital requirements for banks holding certain cryptocurrency assets. The move reflects the region’s growing commitment to integrating digital assets into its financial system while maintaining regulatory alignment with global standards.
HKMA Introduces Draft Guidance
On Monday, the Hong Kong Monetary Authority (HKMA) released a consultation paper introducing a new supervisory policy module, CRP-1, according to local reports. The module outlines how crypto assets should be classified under the Basel Committee on Banking Supervision’s global capital standards, which are scheduled to take effect in Hong Kong in early 2026.
The draft guidance, circulated to the local banking sector, details Hong Kong’s approach to applying the Basel standards within its regulatory framework. Its primary focus is on the treatment of permissionless blockchain assets, such as those built on open networks like Bitcoin and Ethereum.
Lower Requirements for Qualified Assets
Under the proposed rules, crypto assets operating on permissionless blockchains could qualify for lower bank capital requirements if their issuers implement effective risk management and mitigation measures. This adjustment could encourage greater institutional participation in the sector by easing regulatory barriers.
A Pro-Crypto Stance Amid China’s Ban
While China maintains a strict ban on crypto trading and mining, Hong Kong continues to embrace digital assets. The city already has licensing frameworks in place for crypto exchanges and stablecoin issuers, further distinguishing itself as a regional leader in digital finance.
In August, Hong Kong’s Securities and Futures Commission (SFC) issued additional guidance requiring licensed crypto trading platforms to strengthen custody practices for client assets, underscoring the region’s focus on both growth and investor protection.
