Hong Kong proposes new rules to tap insurance capital into cryptocurrencies

Hong Kong is planning to unlock significant capital for digital assets and related infrastructure by proposing new rules that would permit its 158 authorized insurers to channel funds into assets, including cryptocurrencies. However, the Insurance Authority (IA) is maintaining a conservative stance by mandating a 100% "risk charge," requiring insurers to set aside one dollar in reserve for every dollar invested directly in crypto assets to buffer against volatility. Stablecoins would face risk charges based on the fiat currency they are pegged to. The proposal is scheduled for public consultation from February to April 2025, with legislative submissions expected later that year. This move signals a potential watershed moment for institutional crypto adoption in Asia.

(Source：CoinDesk)