🇭🇰🎯 HONG KONG OPENS TO CRYPTO FOR INSURANCE COMPANIES 🎯🇭🇰
Hong Kong is revolutionizing the financial landscape by allowing insurance companies to include Bitcoin and other cryptocurrencies in their balance sheets, with new rules proposed by the Hong Kong Insurance Authority (IA).
This move imposes a 100% risk on unbacked crypto, requiring capital equal to the full value of the assets to mitigate volatility and instability.
Regulated stablecoins in Hong Kong, on the other hand, will have risk charges based on the reference fiat currency, favoring a cautious yet innovative approach.
The framework is part of a broader plan to divert insurance capital towards priority sectors such as crypto and infrastructure, including projects like the Northern Metropolis.
With 158 insurers managing approximately 635 billion HK$ (105 billion dollars) in gross premiums, this regulation could unlock billions for the crypto market, making Hong Kong the first Asian hub to regulate such investments.
The public consultation is scheduled from February to April 2026, followed by legislative review, with the IA gathering feedback to refine the Risk-Based Capital (RBC) regime.
This innovation strengthens Hong Kong's ambition as a digital finance center, aligning with licenses for exchanges and stablecoin issuers from 2026, while distinguishing volatile assets from secure stablecoins.
For investors, it means limited but legitimized exposure, with only solid companies opting for high risk.
Another step towards global institutional adoption of crypto.
