Hong Kong Proposes New Rules to Tap Insurance Capital Into Cryptocurrencies

Hong Kong proposes new rules to tap insurance capital into cryptocurrencies

Public consultation on the proposal will occur from February to April 2025, with legislative submissions expected later that year.

Hong Kong Moves to Clarify Capital Treatment for Crypto in Insurance Sector

According to documents reviewed by Bloomberg, the Hong Kong Insurance Authority is considering new capital rules that would assign a full risk weighting to insurers’ direct cryptocurrency holdings, while treating regulated stablecoins more favorably. Key takeaways: Insurers’ direct crypto exposures would carry a 100% capital risk charge. Regulated stablecoins could receive lower risk treatment aligned with their fiat backing. The framework aim…

Hong Kong to Allow Insurers to Hold Crypto Under New Capital Rules

Hong Kong's insurance regulator is proposing rules that would allow insurers to allocate capital to cryptocurrencies and infrastructure projects, marking an unprecedented expansion of permitted investments for the sector.The Hong Kong Insurance Authority would impose a 100% risk charge on crypto assets under the proposal, Bloomberg reported today, citing a December 4 presentation seen by the publication. Stablecoin investments would face risk ch…

Hong Kong plans new crypto, infrastructure rules for insurers

The city’s de facto central bank expects to grant the first batch of stablecoin approvals early next year