Hong Kong Proposes Groundbreaking Crypto Investment Rules for Insurers
Hong Kong's Insurance Authority is charting new territory in Asia with a proposal to allow insurers to invest in cryptocurrencies and stablecoins. The draft plan, slated for public consultation in early 2026, would impose a 100% risk capital charge on crypto holdings—requiring insurers to hold capital equal to their full value.
Stablecoins WOULD face risk charges pegged to their underlying fiat currencies. This regulatory framework positions Hong Kong as the first Asian jurisdiction to formally integrate digital assets into insurance investment portfolios, signaling institutional validation of crypto markets.