Hong Kong insurance regulator weighs new capital rules, risk charge on crypto assets: Bloomberg
Hong Kong's insurance regulator is proposing a set of capital rules that would steer insurance capital toward cryptocurrencies and government-backed infrastructure projects, according to a proposal seen by Bloomberg.Under the draft framework, the Hong Kong Insurance Authority would apply a 100% risk charge to insurers' exposure to crypto assets, according to the document dated Dec. 4. Stablecoin investments would be assessed risk charges corresponding to their underlying fiat currency, provided the stablecoins are regulated within Hong Kong's jurisdiction.The proposal, which remains subject to revision, is expected to be released for public consultation from February through April, after which the regulator plans to submit the measures for legislative consideration. In a statement to The Block, the Insurance Authority said it began reviewing its risk-based capital regime earlier this year with the goal of supporting both the insurance sector and broader economic development."The review also covers capital treatment proposals having regard to latest regulatory developments such as those for stablecoins and crypto assets," a regulator's spokesperson said. "We are at the stage of gauging industry feedback and will also put the proposals for public consultation in due course."The move comes as Hong Kong accelerates efforts to position itself as a crypto hub. Authorities have rolled out licensing frameworks for virtual asset trading platforms and stablecoin issuers.In November, the Hong Kong Securities and Futures Commission also released circulars aimed at enhancing liquidity and expanding product offerings for local crypto exchanges, allowing them to tap global liquidity through shared order books.Update: Added comment from the Hong Kong Insurance Authority's spokespersonDisclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.