Hong Kong Pioneers Crypto Integration for Insurers, Unlocking $82B Market

Hong Kong's Insurance Authority (IA) has drafted Asia's first regulatory framework allowing insurers to invest in cryptocurrencies and regulated stablecoins. The move, reported by Bloomberg, mandates full capital backing for crypto holdings to mitigate volatility risks, while stablecoins pegged to regulated fiat currencies may qualify for lower risk charges.

The proposal aligns with broader economic goals, incentivizing investments in government-backed infrastructure projects across Hong Kong and mainland China—particularly NEAR the Northern Metropolis development zone. This dual focus on digital assets and physical infrastructure aims to mobilize private capital for strategic priorities.

A public consultation on the draft rules will run from February to April 2026, addressing custody, valuation, and risk management concerns before legislative submission. The measured approach signals cautious institutional adoption rather than outright restriction.