HKMA to Enforce Crypto Banking Rules by 2026

The Hong Kong Monetary Authority (HKMA) is taking significant steps to regulate crypto banking activities, implementing Basel-aligned rules for institutions starting January 1, 2026. This move aims to enhance the regulatory framework within the region and mitigate potential risks associated with cryptocurrency investments. The new regulations target institutional exposure to crypto assets, requiring banks to hold a specific amount of capital against each dollar they invest in volatile cryptoassets. This change is expected to reshape Hong Kong’s crypto landscape, aligning its financial institutions with international standards.