Hong Kong Clarifies Crypto Asset Classification for 2026

The Hong Kong Monetary Authority (HKMA) has unveiled a new classification framework for crypto assets, aligning with Basel’s 2026 rules. This system divides crypto assets into four distinct groups: Group 1a and 1b for traditional and stable tokenized assets, and Groups 2a and 2b for unbacked assets like Bitcoin and Ethereum. This move impacts future bank capital requirements for crypto holdings, potentially altering market dynamics and institutional participation in digital asset markets.