Analysis: Hong Kong to Implement Basel Cryptocurrency Capital Rules on January 1, 2026, Impacting Stablecoins

According to Caixin, the Hong Kong Monetary Authority recently issued a circular confirming the full implementation of new banking capital rules based on the Basel Committee on Banking Supervision's cryptocurrency regulatory standards in Hong Kong starting January 1, 2026. This includes not only cryptocurrencies like Bitcoin and Ethereum as defined by the Basel Committee, but also RWAs and stablecoins. Industry insiders point out that Ethereum is a typical representative of permissionless blockchain technology, and almost all mainstream stablecoins and an increasing number of RWAs are generally issued on public chains. With the expected implementation of the new rules, the willingness of the Hong Kong banking system to hold such stablecoins or RWAs will inevitably be affected. However, both the Basel Committee and the Hong Kong Monetary Authority have made it clear that the Basel cryptocurrency regulatory standards generally do not require banks to hold regulatory capital for cryptocurrencies held in custody for customers, provided that customers' cryptocurrency assets are segregated from the bank's own assets.

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