Hong Kong's cryptocurrency asset regulation upgrade imminent; the banking industry will face a new round of compliance challenges starting in 2026

According to media reports, the Hong Kong Monetary Authority recently announced that starting from January 1, 2026, it will officially implement the new banking capital adequacy regulations based on the Basel Committee on Banking Supervision standards. This means that Hong Kong banks involved in cryptocurrency activities will face more stringent capital adequacy requirements.

Definition of Crypto Assets under Basel Standards

The Basel Committee has provided a clear definition of crypto assets—namely, private “digital assets” that primarily rely on cryptography, distributed ledger technology, or similar technologies. This definition covers a broad scope, including not only traditional digital assets like Bitcoin and Ethereum but also emerging asset classes such as RWA (real-world asset tokenization) and stablecoins, which are now incorporated into the regulatory framework.

Adaptation and Opportunities for Hong Kong’s Banking Industry

As Hong Kong gradually improves its crypto asset regulatory framework, the competitiveness of Hong Kong banks in the Asia-Pacific region will also be adjusted accordingly. The introduction of the new regulations means that Hong Kong banks will need to undergo systematic upgrades in areas such as capital adequacy and risk management. For banks actively embracing digital asset businesses, this presents both a challenge and an opportunity to demonstrate their professional capabilities.

Against the backdrop of countries worldwide accelerating the standardization of digital asset regulation, Hong Kong, as an international financial center, taking the lead in aligning with the highest international standards will further enhance its regulatory authority and market attractiveness in the field of crypto assets.