Hong Kong Monetary Authority releases regulatory manual classifying virtual assets

The Hong Kong Monetary Authority (HKMA) has released a new regulatory policy manual that clearly explains the classification of virtual assets (cryptocurrencies) under the Basel capital regulations.

On the 11th (local time), according to O'Daily, the Hong Kong Monetary Authority published a new regulatory manual on the classification of virtual assets under the Basel capital regulations.

According to the manual, virtual assets are divided into two groups. The first group consists of tokens linked to existing assets and stablecoins with effective stabilization mechanisms, and are treated the same as the linked underlying assets. The second group comprises uncollateralized tokens such as Bitcoin (BTC) and Ethereum (ETH), ineligible tokenized assets, and stablecoins, which are fully capitalized and subject to stricter regulation.

Under Hong Kong's latest 'Stablecoin Ordinance', authorized stablecoins are regarded as low-risk assets, which is expected to further broaden their potential use in the financial sector. Meanwhile, Hong Kong will revise capital, disclosure, and material exposure regulations and fully implement the Basel framework from January 1, 2026.