On 23 Jul 2024, the HKMA announced alignment of its cryptoasset disclosure framework with the BCBS's final disclosure requirements and standard amendments issued on 17 Jul 2024, focusing on standardized reporting templates and refined stablecoin eligibility criteria. The HKMA will consult again on major changes to local requirements following this alignment, building upon its existing CP 24.01 proposal.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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Introduction
On 23 Jul 2024, the Hong Kong Monetary Authority (HKMA) issued a communication regarding alignment of its cryptoasset regulatory framework with recent Basel Committee on Banking Supervision (BCBS) updates, following the BCBS's publication of final disclosure requirements and standard amendments on 17 Jul 2024.
BCBS Framework Updates
The BCBS's final disclosure framework mandates standardized tables and templates for banks to report qualitative information on cryptoasset activities, quantitative capital and liquidity requirements, and accounting classifications. The targeted amendments to the cryptoasset standard primarily refine criteria for stablecoins to qualify for preferential regulatory treatment, alongside technical revisions to ensure consistent application of the standard.
HKMA Alignment Plan
The HKMA will align its existing consultation paper CP 24.01 (‘Cryptoasset Exposures’) with the BCBS updates and will consult the industry again on any major additional changes to local requirements. This follows the HKMA's initial proposal in CP 24.01, which remains the foundation for the revised framework pending further consultation.
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