Hong Kong’s Insurance Authority is proposing a new capital framework designed to direct insurance capital toward crypto assets and government-backed infrastructure projects, according to a draft proposal seen by Bloomberg.

Under the draft dated Dec. 4, the regulator would apply a 100% risk charge to insurers’ exposure to crypto assets. Investments in stablecoins, meanwhile, would be assigned risk charges aligned with their underlying fiat currencies, provided the stablecoins are regulated within Hong Kong’s jurisdiction.

The proposal remains subject to revision and is expected to be released for public consultation between February and April. Following the consultation period, the Insurance Authority plans to submit the measures for legislative consideration.

In a statement to Bloomberg, the regulator said it began reviewing its risk-based capital regime earlier this year with the aim of supporting both the insurance industry and broader economic development.

The move comes as Hong Kong accelerates its push to position itself as a regional crypto hub. Authorities have rolled out licensing frameworks for virtual asset trading platforms and stablecoin issuers.

In November, the Hong Kong Securities and Futures Commission (SFC) also issued a series of circulars aimed at boosting liquidity and expanding product offerings for local crypto exchanges, allowing them to access global liquidity through shared order-book mechanisms.