HKMA Releases Draft Guidelines on Crypto Asset Classification
The Hong Kong Monetary Authority (HKMA) published a draft guideline called CRP-1 on September 8, 2025. The draft explains new bank capital rules from the Basel Committee on Banking Supervision. These rules will take effect in early 2026 and focus on overseeing crypto assets.
Faith Caixin, a Hong Kong partner at King & Wood Mallesons and law lecturer at the University of Hong Kong, shared her views in a media interview. She noted the guidelines allow issuers of crypto assets on permissionless blockchains to benefit from lower bank capital requirements. This applies if they take effective steps to manage related risks.
The framework distinguishes between tokenized assets and stablecoins that meet the stablecoin framework, and unbacked cryptocurrencies like Bitcoin or Ethereum. It does not treat all digital assets the same under banking rules.
Hong Kong Strengthens Crypto and Stablecoin Regulations
Hong Kong is advancing its position as a global hub for cryptocurrencies and stablecoins through new regulations in 2025.
- On July 24, the HKMA announced a ban on unlicensed stablecoin advertisements, effective August 1, 2025. HKMA Chief Executive Eddie Yue warned that promoting or using unlicensed stablecoins could lead to legal consequences.
- On July 29, the HKMA introduced stablecoin licensing rules. All issuers, local and international, must obtain a license by August 1. Issuers must hold 100% reserves in cash or liquid assets and maintain a minimum capital of HK$25 million (about $3.2 million USD). They must also comply with strict anti-money laundering standards.
- On August 15, the Hong Kong Securities and Futures Commission (SFC) implemented new rules to improve the security of digital assets on licensed virtual asset trading platforms.
These measures show Hong Kong’s commitment to creating a secure and innovative environment for digital assets. The city aims to become a leading player in the global crypto and stablecoin market.
