Insurers May Soon Hold Crypto with Hong Kong Rule Review
The Hong Kong Insurance Authority is considering a proposal to permit insurance firms to allocate capital to cryptocurrencies and infrastructure projects. Cryptocurrencies would require a 100% risk charge, obliging insurers to hold regulatory capital equal to the full value of such investments. The review of the risk-based capital regime aims to support both the insurance sector and broader economic growth. Some industry feedback seeks broader coverage, as the current proposal is considered limited. The Authority is gathering input and plans public consultation. Insurance investment in crypto is rising globally; similar regulations have been proposed in the EU, and companies like MassMutual, Allianz, and Tabit have made substantial Bitcoin investments. Hong Kong has increased regulatory attention on crypto, including the recent Fintech 2030 strategy and new stablecoin rules, while crypto activities remain banned in mainland China.
