According to Caixin reports, 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 encryption assets will be fully implemented in Hong Kong. The new regulations set a maximum risk weight of 1250% for the risk exposure of unlicensed public chain encryption assets, requiring banks to hold capital at a 1:1 ratio. However, both the Basel Committee and the Hong Kong Monetary Authority have made it clear that the Basel standards for encryption asset regulation generally will not impose credit risk or market risk regulatory capital requirements on encryption assets held in custody for customers by banks, provided that the customers' encryption assets are isolated from the bank's own assets.