Overview

• Hong Kong’s HKMA published draft CRP-1 setting how banks classify and risk‑weight crypto assets under Basel standards.
• The consultation runs until November 7, 2025, with implementation targeted for January 1, 2026 or early 2026 after review.
• The proposal allows lower capital charges for assets on permissionless blockchains that demonstrate credible governance and robust risk controls.
• The framework splits crypto into Group 1 assets with effective safeguards—including tokenized traditional instruments and licensed stablecoins—and Group 2 assets such as unbacked or algorithmic tokens like Bitcoin and Ethereum.
• The move complements the new Stablecoin Ordinance and tighter SFC custody rules, with only a limited number of stablecoin licenses expected initially despite strong applicant interest.