According to ChainCatcher news, the Hong Kong Insurance Authority has proposed new regulations aimed at guiding insurance funds into the fields of crypto assets and infrastructure. According to the presentation document dated December 4, the regulator intends to impose a 100% risk capital requirement on crypto assets, while the risk capital requirement for stablecoin investments will depend on the fiat currency to which the Hong Kong regulation ties the stablecoin.
The Hong Kong Insurance Authority has stated that it has launched a review of the risk capital regime this year, with the primary goal of supporting the insurance industry and the broader economic development. The proposal is expected to undergo public consultation from February to April next year, and then be submitted for legislation.
In addition, the new regulations also involve incentives for infrastructure investment, proposing to provide capital benefits for investments in infrastructure projects in Hong Kong, mainland China, or infrastructure projects linked to Hong Kong (such as the development of new towns in the Northern Metropolis) to support the local infrastructure construction plans of the SAR government. As of 2024, the total premium income of the Hong Kong insurance industry is approximately 635 billion Hong Kong dollars.