The Hong Kong Monetary Authority will implement new regulations on encryption assets starting in 2026, with a maximum risk weight for banks of 1250%.

[Coin World] The Hong Kong Monetary Authority recently issued a circular confirming that new banking capital regulations based on the Basel Committee on Banking Supervision's encryption asset regulatory standards will be fully implemented in Hong Kong starting January 1, 2026. The new regulations set a maximum risk weight of 1250% for unlicensed public chain encryption asset risk exposure, requiring banks to hold capital on a 1:1 basis. However, both the Basel Committee and the Hong Kong Monetary Authority have made it clear that the Basel encryption asset regulatory standards generally will not impose credit risk or market risk regulatory capital requirements on banks for encryption assets held in custody for clients, provided that the clients' encryption assets are segregated from the bank's own assets.