HKMA Consults on Revised Capital Framework for Banking Crypto Exposure

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The Hong Kong Monetary Authority (HKMA) has released a consultation paper proposing a new supervisory policy manual, CRP-1, to govern the capital treatment of cryptocurrency assets held by banks.

The module outlines the local implementation of the Basel Committee on Banking Supervision’s global standards, scheduled for January 2026.

The draft guidance specifies that crypto assets operating on permissionless blockchains may be eligible for reduced capital requirements, contingent upon the implementation of robust risk management and mitigation protocols by their issuers.

This initiative is a key component of Hong Kong’s strategy to develop a comprehensive digital asset ecosystem.