Hong Kong Insurance Authority Proposes New Crypto and Infrastructure Capital Rules

The regulator unveils a draft framework imposing a 100 % risk charge on crypto assets and offering incentives for infrastructure investments.

The Hong Kong Insurance Authority reportedly proposed on 4 December that it will open a public consultation from February to April on a proposed risk‑based capital regime that channels insurer capital into cryptocurrencies, stablecoins and infrastructure projects. The draft imposes a 100 % risk charge on crypto assets, with stablecoin charges tied to the fiat currency of the peg, and suggests capital incentives for investments in Hong Kong‑linked infrastructure such as the Northern Metropolis.

The initiative aims to support the insurance sector’s growth and the city’s broader economic development, aligning with Hong Kong’s strategy to become a leading digital‑finance hub. “We are at the stage of gauging industry feedback and will also put the proposals for public consultation in due course,” a regulator spokesperson told Bloomberg News.

Read More: Hong Kong and Mainland Investors Signal Strong Demand for Tokenized Funds, Study Finds

🧭 FAQs

• What risk charge is proposed for crypto assets? A 100 % risk charge on crypto holdings.
• When will the public consultation take place? From February through April 2026.
• Which infrastructure projects are eligible for incentives? Projects like the Northern Metropolis and other Hong Kong or mainland developments.
• How many insurers are affected by the proposal? Approximately 158 authorized insurers, with total premiums of about HK$635 billion in 2024.