The Hong Kong Monetary Authority (HKMA) is set to enforce Basel-aligned crypto regulations for banks starting January 1, 2026. This move aligns Hong Kong’s financial framework with international standards and aims to enhance financial stability in the banking sector. The new rules will mandate higher capital requirements for banks holding crypto assets, affecting local institutions like those dealing with Bitcoin, Ethereum, and regulated stablecoins. HKMA Chief Executive Eddie Yue notes that these amendments, the result of extensive industry consultations, ensure a prudent approach to managing crypto risks while facilitating responsible innovation within Hong Kong’s banking system.