worldcoinindex.com
Hong Kong’s insurance regulator is preparing a new capital framework that could reshape how insurers allocate funds, encouraging exposure to cryptocurrencies while also supporting government-backed infrastructure projects.
Under the draft rules, insurers’ holdings of crypto assets would attract a full 100% risk charge, signaling a cautious approach to volatile digital assets. Stablecoins, however, would receive more favorable treatment, with capital requirements tied to the risk profile of their underlying fiat currencies—provided those stablecoins are regulated within Hong Kong.
The proposal, dated December 4, is still subject to changes and is expected to enter a public consultation phase between February and April. After gathering industry feedback, the regulator plans to move the measures forward for legislative review.
The Insurance Authority said the overhaul is part of a broader review of its risk-based capital regime launched earlier this year. The aim is to strengthen the insurance sector while aligning capital rules with recent regulatory developments, including those affecting stablecoins and other crypto assets.
These planned changes come as Hong Kong steps up efforts to cement its status as a global crypto hub. In recent months, authorities have introduced licensing regimes for virtual asset trading platforms and stablecoin issuers, alongside initiatives to improve liquidity and broaden product offerings for local crypto exchanges through access to global order books.