ME News message, December 22 (UTC+8), the Hong Kong Insurance Authority proposed new regulations aimed at guiding insurance funds into the fields of cryptocurrency assets and infrastructure. According to the presentation document from December 4, the regulator intends to impose a 100% risk capital requirement on cryptocurrency assets, while the risk capital requirement for stablecoin investments will be determined based on the fiat currency to which the stablecoin is pegged. The Hong Kong Insurance Authority stated that it has launched a review of the risk capital regime this year, with the primary goal of supporting the insurance industry and broader economic development. The proposal is expected to undergo public consultation from February to April next year, followed by submission for legislation. Additionally, the new regulations will involve incentives for infrastructure investment, proposing capital incentives 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 plan of the SAR government. By 2024, the total premium income of the Hong Kong insurance industry is estimated to be around 635 billion HKD. (Source: ME)
