Hong Kong draft rules reshape insurer capital for crypto and infrastructure
Hong Kong’s insurance regulator is drafting capital rules that could redirect insurer balance sheets toward cryptocurrencies and government-backed infrastructure, according to a proposal reviewed by Bloomberg. The paper sketches a sharper risk lens for digital assets, paired with incentives elsewhere.
Under the draft, the Hong Kong Insurance Authority would apply a 100% risk charge to insurers’ exposure to crypto assets. The document, dated Dec. 4, treats the category as capital-intensive, plain and simple.
Stablecoins get different handling. Risk charges would mirror the underlying fiat currency, provided the tokens sit within Hong Kong’s regulatory perimeter. Regulated issuance matters. Jurisdiction matters. Without…
