Hong Kong to Enforce Basel Crypto Rules by 2026 Boosting Institutional Hub Ambitions
Hong Kong is preparing to implement the Basel Committee’s stringent international banking standards for cryptocurrency by January 2026, aligning its financial system with global regulatory expectations and reinforcing its bid to become the world’s leading hub for institutional crypto activity [1]. The new framework mandates that banks hold $1 in capital for every $1 in crypto assets they hold, significantly raising the cost of exposure to volatile assets such as Bitcoin [2]. This approach, while more expensive for financial institutions, is designed to mitigate systemic risks and promote transparency in the handling of digital assets.
Hong Kong’s Monetary Authority (HKMA) has made the adoption of these rules a priority, signaling a…
