Hong Kong is considering a new regulatory proposal that could allow insurance companies to invest in cryptocurrencies under strict conditions. The city’s Insurance Authority has outlined draft rules that would permit insurers to hold crypto assets while applying a 100% risk charge, requiring firms to maintain capital equal to the full value of their exposure.
The proposal, reported by Bloomberg, marks the first time Hong Kong’s insurance regulator has formally addressed how insurers could include crypto on their balance sheets. Stablecoins would be treated differently, with capital requirements linked to the fiat currency they are pegged to, as long as the issuer is licensed in Hong Kong.
This move aligns with Hong Kong’s broader effort to expand its regulated digital asset framework while keeping financial risks contained. Public consultations are expected in early 2026, and even modest insurer participation could bring notable institutional capital into the crypto market, signaling cautious but growing acceptance.