PANews August 25 news, according to Caixin, the Hong Kong Monetary Authority recently issued a circular confirming that starting from January 1, 2026, new banking capital regulations based on the Basel Committee on Banking Supervision's standards for the regulation of crypto assets will be fully implemented in Hong Kong.

Fei Si, a partner at King & Wood Mallesons in Hong Kong and a lecturer at the Faculty of Law at the University of Hong Kong, stated in a special interview with Caixin that the new regulations set the risk weight for crypto asset exposure using unlicensed blockchain technology at a maximum of 1250%, meaning that banks must hold capital against these crypto asset exposures at a ratio of at least 1:1. Such high regulatory capital requirements will lead many banks to be unwilling to hold such crypto assets.