On 19 Dec 2025, the HKMA gazetted revised SPM modules and a code of practice to implement the Basel Committee’s cryptoasset exposure standards under the Banking (Capital) (Amendment) Rules 2025 and Banking (Exposure Limits) (Amendment) Rules 2025. The revisions, effective 1 January 2026, replace prior regulatory instruments to align Hong Kong’s framework with the new prudential requirements for cryptoasset exposures.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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Revised SPM Modules and Code of Practice Gazette
On 19 Dec 2025, the Hong Kong Monetary Authority (HKMA) gazetted eight revised Supervisory Policy Manual (SPM) modules and a revised Banking (Exposure Limits) Code of Practice as statutory guidelines under the Banking Ordinance (BO), implementing the Basel Committee’s prudential treatment of banks’ cryptoasset exposures as specified in the Banking (Capital) (Amendment) Rules 2025 and Banking (Exposure Limits) (Amendment) Rules 2025. The revisions primarily address local implementation of these standards and consequential amendments.
Key Revised Regulatory Instruments
The revised SPM modules include CA-G-1 (Overview of Capital Adequacy Regime), CA-G-5 (Supervisory Review Process), CR-G-8 (Large Exposures and Risk Concentrations), CR-G-9 (Exposures to Connected Parties), CR-L-5 (Major Acquisitions and Investments: BELR Part 3), LM-1 (Regulatory Framework for Supervision of Liquidity Risk), MR-1 (Market Risk Capital Charge), and MR-2 (CVA Risk Capital Charge). These instruments, alongside the revised Banking (Exposure Limits) Code of Practice, replace prior versions to align with the 2025 amendment rules.
Implementation and Access
The revised SPM modules and code of practice will take effect on 1 January 2026. Authorized Institutions may access these documents via the HKMA’s Banking Regulatory Document Repository on the public website or the Supervisory Communication Website, as specified in the notice.
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