Hong Kong’s Insurance Authority is proposing a slate of rules to channel insurance capital into assets including cryptocurrencies and infrastructure, a move described as unprecedented for the regulator. The plan would redirect funds toward sectors the government has prioritized for development.
Under the proposal, the insurance regulator would impose a 100% risk charge on crypto assets, reflecting the heightened risk profile the authority intends to assign digital assets. Stablecoin investments would attract risk charges based on the fiat currency the Hong Kong-regulated stablecoin is pegged to, the document showed.
If enacted, the rules could influence insurers’ asset allocation and investment strategies, aligning capital with government priorities. The proposal signals a broader shift in regulatory oversight of digital assets for insurers.
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