Crypto may enter insurers’ portfolios as Hong Kong reviews capital rules
Hong Kong's insurance regulator is reviewing capital rules to potentially allow insurers to allocate capital to cryptocurrencies.Summary
The Hong Kong Insurance Authority is reportedly reviewing its risk-based capital regime to potentially permit insurance companies to allocate capital towards cryptocurrencies and infrastructure projects. Under the proposal, crypto allocations would face a 100% risk charge, requiring insurers to hold regulatory capital equal to the full value of their crypto holdings. This review comes as Hong Kong seeks to support its insurance industry and economic development, though some industry feedback suggested limitations in the current proposal. The authority is currently gauging feedback before initiating a public consultation. This potential move follows similar considerations in the EU and actual investments by global insurers like MassMutual and Allianz into digital assets, signaling a growing trend of integrating crypto into traditional finance, even as mainland China maintains strict prohibitions on most crypto activities.
(Source：Cointelegraph)