The Hong Kong Monetary Authority (HKMA) released a draft guideline called CRP-1 on “Classification of Crypto Assets” (referred to as the “Draft CRP-1”) for feedback from local banks.
The draft, released on September 8, 2025, aims to explain the new bank capital rules from the Basel Committee on Banking Supervision (referred to as the “Basel Committee”) for overseeing crypto assets, which will start in early 2026.
As per reports, Caixin, Faith, a Hong Kong partner at King & Wood Mallesons and a lecturer at the Faculty of Law at the University of Hong Kong shared her views in an exclusive media interview. She discussed the guidelines from the Hong Kong Monetary Authority that emphasize how issuers of crypto assets using permissionless blockchain technology can benefit from lower bank capital requirements. This is possible if they implement effective steps to prevent and address associated risks.
Instead of treating all digital assets the same way under banking rules, the framework separates tokenized assets and stablecoins that meet the stablecoin framework from unbacked crypto like Bitcoin or Ethereum.
Hong Kong Bolsters Crypto and Stablecoin Regulations
Hong Kong is intensifying its push to become a leading global hub for cryptocurrencies and stablecoins with a series of regulatory advancements in 2025. On July 24, the Hong Kong Monetary Authority (HKMA) announced a ban on unlicensed stablecoin advertisements, effective August 1, 2025. HKMA Chief Executive Eddie Yue warned the people that promoting or using unlicensed stablecoins could lead to legal consequences, emphasizing the need for compliance to ensure market trust and stability.
On July 29, the HKMA also introduced comprehensive stablecoin licensing regulations, mandating that all issuers, local and international, secure a license by August 1. The rules required the issuers to maintain 100% reserves in cash or liquid assets by holding a minimum capital of HK$25 million (approximately $3.2 million USD) and adhere to stringent anti-money laundering (AML) standards.
Further, to strengthen its regulatory landscape, the Hong Kong Securities and Futures Commission (SFC) rolled out new rules on August 15 to enhance the security of digital assets on licensed virtual asset trading platforms.
These developments highlight Hong Kong’s strategic efforts to foster a secure, innovative, and competitive environment for cryptocurrencies and stablecoins, with the aim of positioning it as a formidable player in the global digital asset landscape.
