CoinVoice has recently learned that the Hong Kong Insurance Authority has proposed new regulations aimed at guiding insurance funds into the fields of crypto assets and infrastructure. According to a presentation document dated December 4, the regulatory body intends to impose a 100% risk capital requirement on crypto assets, while the risk capital requirement for investments in stablecoins will be determined based on the fiat currency to which the Hong Kong-regulated stablecoin is pegged.
The Hong Kong Insurance Authority has stated that it has initiated 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, followed by submission for legislation.
In addition, the new regulations also involve incentives for infrastructure investment, proposing to provide capital advantages for investments in infrastructure projects in Hong Kong, mainland China, or those linked to Hong Kong (such as the development of new towns in the Northern Metropolis). As of 2024, the total premium income of the Hong Kong insurance industry is approximately 635 billion HKD. [Original link]
