The Hong Kong Insurance coverage Authority is reviewing a proposal that might permit insurers to incorporate cryptocurrency and infrastructure investments of their portfolios, underneath strict capital guidelines designed for security and oversight.
The regulator goals to assist the insurance coverage business and financial growth by updating its present risk-based capital pointers, in response to a Bloomberg report on December 22.
Below this plan, crypto belongings can be topic to a 100% capital cost, which requires insurers to carry regulatory capital equal to the total worth of their crypto holdings.
Do you know?
Subscribe – We publish new crypto explainer movies each week!
What’s Fantom? | Animated FTM Explainer
Public consultations are set to begin in February 2026 and proceed by April 2026, adopted by the assessment and drafting of formal laws.
The regulator emphasised that it made these selections independently, although they align with authorities priorities to stimulate native infrastructure funding.
The draft guidelines additionally embody incentives for insurers to fund infrastructure tasks, notably these situated in Hong Kong or mainland China, such because the Northern Metropolis, a large-scale city growth close to the border.
The proposal displays Hong Kong’s push to evolve right into a regulated digital finance hub. In August, town started implementing a licensing framework for stablecoin issuers, and the primary approvals are anticipated quickly.
