The Hong Kong Insurance Authority is reviewing a proposal that would allow insurers to include cryptocurrency and infrastructure investments in their portfolios, under strict capital rules designed for safety and oversight.
The regulator aims to support the insurance industry and economic development by updating its current risk-based capital guidelines, according to a Bloomberg report on December 22.
Under this plan, crypto assets would be subject to a 100% capital charge, which requires insurers to hold regulatory capital equal to the full value of their crypto holdings.
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Public consultations are set to start in February 2026 and continue through April 2026, followed by the review and drafting of formal legislation.
The regulator emphasized that it made these decisions independently, though they align with government priorities to stimulate local infrastructure investment.
The draft rules also include incentives for insurers to fund infrastructure projects, particularly those located in Hong Kong or mainland China, such as the Northern Metropolis, a large-scale urban development near the border.
The proposal reflects Hong Kong’s push to evolve into a regulated digital finance hub. In August, the city began enforcing a licensing framework for stablecoin issuers, and the first approvals are expected soon.
