Regulatory Alerts2025-11-27
Added · Updated
SPM CRP-1: Update on Cryptoassets Classification Conditions
The document establishes classification conditions for cryptoassets, requiring Authorized Institutions (AIs) to classify exposures as Group 1 (tokenized traditional assets or stablecoins with effective stabilisation mechanisms) or Group 2 (unbacked or non-compliant assets) effective 1 January 2026. AIs must assess compliance with specific criteria, including reserve asset quality, redemption risk tests, and hedging recognition, while notifying the HKMA of new cryptoasset acquisitions and classifying them as Group 2b until approval. Existing exposures held prior to the effective date must be classified as Group 2b until the HKMA agrees to a different classification assessment.