Hong Kong Proposes New Rules To Allow Crypto Investments For Insurers – Report

Hong Kong is reportedly exploring new guidelines that may enable insurance coverage firms to put money into cryptocurrencies and the infrastructure sector as a part of its efforts to develop into a number one hub for digital belongings and assist broader financial improvement.

Hong Kong Eyes Crypto Investments For Insurers

On Monday, Bloomberg reported that the Hong Kong Insurance Authority has proposed a set of latest guidelines that might channel insurance coverage capital into digital belongings, together with cryptocurrencies and stablecoins.

Hong Kong monetary authorities have been actively working to develop a complete framework that helps the growth of the digital belongings trade, a part of its technique to develop into a number one crypto hub on the earth.

According to the December 4 presentation reviewed by Bloomberg, the insurance coverage regulator would impose a 100% danger cost on crypto belongings, requiring insurers to carry reserves equal to the worth of their crypto investments.

Meanwhile, stablecoin investments can be approached otherwise underneath the brand new proposal, with danger expenses primarily based on the fiat forex the Hong Kong-regulated token is pegged to.

The Insurance Authority proposal, which might nonetheless change within the coming months, will reportedly be open for public session from February by means of April 2026, adopted by legislative submissions.

The regulator informed Bloomberg that it initiated the overview of the risk-based capital regime this 12 months with the principle objective of supporting the insurance coverage trade and broader financial improvement.

Notably, the insurance coverage authority web site states that there have been 158 approved insurers in Hong Kong as of June 2025. Moreover, the overall gross premiums of the Hong Kong insurance coverage trade had been HK$635 billion, price roughly $82 billion, in 2024.

“We are on the stage of gauging trade suggestions and also will put the proposals for public session sooner or later,” a spokesperson for the regulator informed the information media outlet.

The proposed insurer framework additionally addresses new infrastructure guidelines as town seeks new development. The regulator is reportedly planning capital incentives for investments in Hong Kong or on the mainland, in addition to for initiatives listed or issued within the monetary hub.

HK’s Stablecoin Landscape

As Bloomberg famous, the Hong Kong Monetary Authority (HKMA) is anticipated to grant the primary batch of stablecoin issuer licenses initially of 2026. However, some trade gamers imagine that the regulator’s timeline may very well be delayed.

As reported by Bitcoinist, the People’s Bank of China (PBOC) and different high monetary regulators lately affirmed that stablecoins don’t qualify as authorized tender within the mainland, as they don’t meet regulatory necessities and danger of getting used for unlawful actions.

Following the pronouncement, a number of analysts recommended that the PBOC’s current declarations not solely sank hopes that Beijing may need softened its stance on cryptocurrencies but in addition would have an effect on Hong Kong’s efforts to develop into a hub for the stablecoin trade.

Earlier this 12 months, the HKMA enacted the Stablecoins Ordinance, which directs any particular person or entity in search of to problem a fiat-referenced stablecoin (FRS) in Hong Kong, or any Hong Kong Dollar-pegged token, to acquire a license from the regulator.

Multiple firms have applied for the license, with greater than 30 functions filed this 12 months, in line with native information shops. The listing of candidates consists of logistics know-how agency Reitar Logtech and the abroad arm of Chinese mainland monetary know-how big Ant Group.

According to the founding director of the Law, Innovation, Technology and Entrepreneurship Lab on the University of Hong Kong’s Faculty of Law, Brian Tang, Beijing’s stance implies that candidates for Hong Kong’s stablecoin licenses would want to rethink if the applying submitted to the HKMA touches mainland China issuers and customers.

A spokesperson acknowledged that the HKMA was reviewing the functions and aimed to start with a decreased variety of licenses. However, they famous that even when Hong Kong proceeds with the unique approval schedule, initiatives that contain the yuan or mainland Chinese establishments would doubtless be delayed.