On September 8, the Hong Kong Monetary Authority (HKMA) issued a draft of the new module CRP-1, "Crypto-Asset Classification," of its Banking Supervisory Policy Manual (SPM), for public comment to the local banking industry. This draft aims to further clarify regulatory guidance for the Basel Committee on Banking Supervision's new capital requirements for banks, which will implement the crypto-asset regulatory standards in early 2026. The new regulations classify crypto-assets into two groups, each further divided into two subgroups (Group 1a, Group 1b, Group 2a, and Group 2b). According to the revised Hong Kong Banking (Capital) Rules, Group 1a comprises tokenized traditional assets, and Group 1b comprises stablecoins with effective stabilization mechanisms. Group 2 assets include all unreserved crypto-assets, such as Bitcoin and Ethereum, as well as any tokenized traditional assets and stablecoins that do not meet the classification criteria. These assets are further subdivided into Group 2a (limited hedging recognition) and Group 2b (unrecognized hedging) using a set of hedging recognition criteria. (Caixin)