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The Hong Kong Insurance coverage Authority is reviewing a proposal that may permit insurers to incorporate cryptocurrency and infrastructure investments of their portfoliosbeneath strict capital guidelines designed for security and oversight.
The regulator goals to assist the insurance coverage trade and financial growth by updating its present risk-based capital tips, in response to a Bloomberg report on December 22.
Beneath this plan, crypto belongings could be topic to a 100% capital costwhich requires insurers to carry regulatory capital equal to the complete worth of their crypto holdings.
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Public consultations are set to start out in February 2026 and proceed by way of April 2026adopted by the evaluation and drafting of formal laws.
The regulator emphasised that it made these choices independently, although they align with authorities priorities to stimulate native infrastructure funding.
The draft guidelines additionally embody incentives for insurers to fund infrastructure initiativesnotably these positioned in Hong Kong or mainland China, such because the Northern Metropolis, a large-scale city growth close to the border.
The proposal displays Hong Kong’s push to evolve right into a regulated digital finance hub. In August, town started implementing a licensing framework for stablecoin issuers, and the primary approvals are anticipated quickly.
