The Hong Kong government has announced it will officially adopt the Basel Committee's Capital requirements for digital assets from 2026, marking a significant step in standardizing how the banking system approaches crypto risk.
Applies to all digital assets.
According to the plan, the new regulatory framework will cover all types of crypto assets, including:
- Bitcoin and Ethereum
- Stablecoins
- Real Assets Tokenize (RWA)
- Other types of digital assets that banks have direct or indirect exposure to.
This means that banks in Hong Kong will have to adjust how they calculate and allocate Capital, depending on the risk level of each crypto asset class, instead of handling it generally or using a temporary mechanism as before.
Direct impact on banks
The adoption of Basel standards will directly affect:
- Minimum Capital requirements for investments or exposure to crypto.
- The bank's digital asset business strategy
- How banks assess, control, and report risks related to blockchain and digital assets.
Assets with high volatility or insufficient backing are likely to carry a higher risk weighting, while some Tokenize asset structures or stablecoins with clear backing mechanisms may be classified as having lower risk.
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In line with the global standardization trend.
Hong Kong's move is part of a global effort to standardize how the banking industry manages digital asset risks, initiated by the Basel Committee on Banking Supervision. The goal of this code of conduct is:
- Avoid systemic risks when banks become deeply involved in crypto.
- Ensuring financial stability
- Creating a clear and transparent playing field for traditional financial institutions to participate in the digital asset sector.
Strengthening its central position in the digital asset market.
The early adoption of Basel standards is XEM as a strategic move that will help Hong Kong:
- Balancing innovation and risk management
- Attracting banks, financial institutions, and Web3 businesses to operate within a clear legal framework.
- Strengthening Vai as a leading financial and digital asset center in Asia.
