Hong Kongʼs Proposal to Ease Capital Rules for Banks Holding Crypto Assets ●
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Hong Kongʼs HKMA proposed new bank capital rules CRP1) to take effect in 2026, lowering capital requirements for compliant or licensed crypto assets like regulated stablecoins, while keeping higher buffers for riskier, unregulated tokens The framework classifies assets into risk buckets and ties lighter treatment to strong risk controls, aiming to balance financial stability with Hong Kongʼs push to become a regional hub for digital assets
Hong Kongʼs banking regulator, the Hong Kong Monetary Authority HKMA, released a draft consultation paper (module CRP1 in the Supervisory Policy Manual) last Wednesday, September 10, outlining proposed adjustments to the capital requirements for banks holding exposures to digital assets. Under the new framework, expected to take effect in early 2026, banks may face lower capital buffer requirements for certain crypto assets, especially those that are “compliant,ˮ licensed, or otherwise subject to robust risk controls. A key element of the proposal is the classification of crypto assets into different risk buckets, depending on factors like whether they are stablecoins, tokenised traditional assets, or unbacked cryptocurrencies (e.g. Bitcoin or Ethereum). For example, stablecoins that meet regulatory/licensing criteria under Hong Kongʼs “Stablecoin Ordinanceˮ may benefit from lighter capital treatment.