Hong Kong to Implement Basel Crypto Asset Regulations in 2026

According to Foresight News, Hong Kong's Monetary Authority has issued a circular confirming the full implementation of new banking capital regulations based on the Basel Committee on Banking Supervision's crypto asset standards starting January 1, 2026. These regulations will encompass not only cryptocurrencies like Bitcoin and Ethereum but also real-world assets (RWA) and stablecoins. Industry experts highlight Ethereum as a prime example of permissionless blockchain technology, noting that most mainstream stablecoins and an increasing number of RWAs are typically issued on public blockchains. The anticipated implementation of these new regulations is expected to impact the willingness of Hong Kong's banking system to hold such stablecoins or RWAs. However, both the Basel Committee and Hong Kong's Monetary Authority have clarified that the Basel crypto asset standards generally do not impose credit risk or market risk regulatory capital requirements on banks for crypto assets held in custody for clients. This exemption is contingent upon the separation of clients' crypto assets from the bank's own assets.