Regulatory Alerts2022-12-20
Added · Updated
Prudential treatment of cryptoasset exposures
The Hong Kong Monetary Authority informs authorized institutions of the Basel Committee on Banking Supervision's final standard for the prudential treatment of cryptoasset exposures, which categorizes assets into Group 1 and Group 2 with distinct capital requirements. The framework subjects qualifying tokenized assets and stablecoins to existing risk-based capital rules, while imposing more conservative treatments, exposure limits, and infrastructure risk add-ons on other cryptoassets. The regulator intends to implement this standard locally by 1 January 2025 and advises institutions planning cryptoasset activities to familiarize themselves with the new requirements.