Hong Kong Proposes Groundbreaking Crypto Rules for $82B Insurance Market
Hong Kong's Insurance Authority unveiled a pioneering framework allowing insurers to allocate capital to cryptocurrencies. The proposal mandates a 100% risk charge on crypto holdings, requiring full reserve backing for digital asset investments.
Stablecoins receive preferential treatment under the new regime, potentially accelerating institutional adoption. The measures position Hong Kong to capture first-mover advantage in Asia's institutional crypto market ahead of the 2026 implementation timeline.
With $82 billion in annual premiums, Hong Kong's insurance sector could become a significant liquidity provider for digital assets. The MOVE reflects the city's strategic pivot toward becoming Asia's crypto hub amid competition from Singapore and Tokyo.