Hong Kong insurance regulator weighs new capital rules, risk charge on crypto assets: Bloomberg

Hong Kong's insurance regulator is considering new capital rules designed to direct insurance capital toward cryptocurrencies and government-backed infrastructure projects. Under the draft framework, the Hong Kong Insurance Authority would impose a 100% risk charge on insurers' holdings of crypto assets, though stablecoin investments regulated within Hong Kong would have risk charges corresponding to their underlying fiat currency. This proposal is subject to revision and is expected to enter public consultation from February through April before legislative consideration. The regulator stated the review aims to support both the insurance sector and broader economic development, aligning with Hong Kong's ongoing efforts to establish itself as a major crypto hub through new licensing frameworks and measures to enhance crypto exchange liquidity.

(Source：The Block)