The Hong Kong Monetary Authority has announced a new crypto asset classification plan for 2026 that will align with Basel standards and affect banking capital rules.
Risk-Based Classification of Crypto Assets
The new classification revamps the approach to risk for crypto assets in Hong Kong, categorizing digital assets into groups based on their risk levels. This will be regulated by the Hong Kong Monetary Authority and the Securities and Futures Commission.
Stablecoin Licensing
The new regulations introduced a licensing regime for stablecoins, which will enhance their treatment if they meet the new criteria.
Impact of New Rules on the Financial Sector
The regulatory update will affect capital rules for banks, allowing them to allocate assets differently. Licensed stablecoins will be subject to lighter treatment, likely enhancing liquidity in Hong Kong's financial sector.
The regulatory update in Hong Kong aims to attract investments in crypto assets and create a stable environment for their circulation, potentially encouraging broader institutional investment in digital assets.
