HKMA Launches Tokenization Pilot, Crypto Regulation Roundup
The Hong Kong Monetary Authority (HKMA) has launched the pilot phase of Project Ensemble TX, enabling major banks and asset managers to use tokenized HKD deposits for money market fund transactions and liquidity management via the HKD Real Time Gross Settlement system. The tokenization pilot involves Standard Chartered, HSBC, Bank of China (Hong Kong), BlackRock and Franklin Templeton and will run through 2026. South Korea’s Financial Services Commission is finalizing a 2026 framework to allow non-bank tech firms to issue won-pegged stablecoins. In the US, the OCC issued an interpretive letter clarifying that banks may hold cryptoassets to pay network fees (“gas”) and conduct blockchain tests. Senate leaders confirmed that the CLARITY Act, which would define federal crypto market structure, won’t pass until early 2026. In Japan, the Financial Services Agency will reclassify top assets—including BTC and ETH—under the Financial Instruments and Exchange Act, impose enhanced disclosures, and cut the crypto capital gains tax rate to 20%. These regulatory moves offer clearer compliance paths while creating both opportunities and caution for traders.
Neutral
The overall impact is neutral. The HKMA tokenization pilot and clearer stablecoin and disclosure rules in Japan support institutional adoption and operational efficiency, which is bullish. However, delays in the US CLARITY Act and the cautious stance of some regulators introduce short-term uncertainty. Similar past events—such as the OCC’s March 2025 letters boosting bank crypto custody—show that regulatory clarity can lift market confidence, but legislative delays can stall new products. In the short term, traders may see muted volatility as institutions prepare systems and frameworks; over the long term, these global compliance steps could underpin more robust institutional participation, healthier liquidity and gradual bullish momentum.