The Hong Kong Monetary Authority (HKMA) released a draft guideline called CRP-1 on “Classification of Crypto Assets” for feedback from local banks. This framework, published on September 8, 2025, clarifies the new bank capital rules outlined by the Basel Committee on Banking Supervision for overseeing crypto assets, which will come into effect in early 2026. HKMA guidelines specifically focus on how issuers of permissionless blockchain-based cryptocurrencies can benefit from lower bank capital requirements if they implement effective risk prevention and mitigation measures. The framework distinguishes between tokenized assets and stablecoins meeting the stablecoin framework, and unbacked crypto like Bitcoin or Ethereum. 2025 has seen Hong Kong take proactive steps to solidify its position as a leading global hub for digital currencies and stablecoins. On July 24th, the HKMA issued a ban on unlicensed stablecoin advertisements, effective August 1st, 2025. HKMA Chief Executive Eddie Yue warned that promoting or using unlicensed stablecoins could lead to legal consequences and urged compliance for market stability. On July 29th, the HKMA introduced comprehensive stablecoin licensing regulations requiring all issuers, both local and international, to secure a license by August 1st. These rules require issuers to maintain 100% reserves in cash or liquid assets with a minimum capital of HK$25 million (approximately $3.2 million USD) and adhere to stringent anti-money laundering (AML) standards. Further strengthening its regulatory framework, the Hong Kong Securities and Futures Commission (SFC) introduced new rules on August 15th to enhance the security of digital assets on licensed virtual asset trading platforms.