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Hong Kong Monetary Authority to Implement Basel Cryptocurrency Capital Rules on January 1, 2026
Summary: According to Caixin, the Hong Kong Monetary Authority recently issued a circular confirming that starting on January 1, 2026, Hong Kong will fully implement new banking capital rules based on the Basel Committee on Banking Supervision's cryptocurrency regulatory standards. Fee Si, a partner at King & Wood Mallesons in Hong Kong and lecturer at the ...
According to Caixin, the Hong Kong Monetary Authority recently issued a circular confirming that starting on January 1, 2026, Hong Kong will fully implement new banking capital rules based on the Basel Committee on Banking Supervision's cryptocurrency regulatory standards. Fee Si, a partner at King & Wood Mallesons in Hong Kong and lecturer at the University of Hong Kong Law School, stated in an interview with Caixin that the new rules set the risk weight for the exposure to unlicensed blockchain technology-based cryptocurrencies at the highest level of 1250%, meaning that banks must hold capital for these exposures at a ratio of at least 1:1. Such high regulatory capital requirements will lead to many banks being unwilling to hold these types of cryptocurrencies.
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Link: Hong Kong Monetary Authority to Implement Basel Cryptocurrency Capital Rules on January 1, 2026 [Copy]
