Hong Kong is reportedly exploring new rules that would allow insurance companies to invest in cryptocurrencies and the infrastructure sector as part of its efforts to become a leading hub for digital assets and support broader economic development.
Hong Kong eyes crypto investments for insurers
On Monday, Bloomberg reported that the Hong Kong Insurance Authority had proposed a set of new rules that could channel insurance capital into digital assets, including cryptocurrencies and stablecoins.
Hong Kong’s financial authorities have been actively working to develop a comprehensive framework that supports the expansion of the digital assets sector, as part of their strategy to become one of the world’s leading crypto hubs.
According to the December 4 presentation reviewed by Bloomberg, the insurance regulator would impose a 100% risk charge on crypto assets, requiring insurers to hold reserves equal to the value of their crypto investments.
At the same time, investments in stablecoins would be approached differently under the new proposal, with risk fees based on the fiat currency to which the Hong Kong-regulated token is pegged.
The Insurance Authority’s proposal, which could further change in the coming months, would be open for public consultation from February to April 2026, followed by legislative submissions.
The regulator told Bloomberg that it launched the review of the risk-based capital regime this year with the primary aim of supporting the insurance sector and broader economic development.
Notably, the Insurance Authority’s website states that there were 158 licensed insurers in Hong Kong as of June 2025. Additionally, the total gross premiums of Hong Kong’s insurance industry were HK$635 billion, worth around HK$82 billion, in 2024.
“We are at the stage of assessing industry feedback and will also subject the proposals to public consultation in due course,” a spokesperson for the regulator told the news outlet.
The proposed framework for insurers also addresses new infrastructure rules as the city seeks new growth. The regulator would provide capital incentives for investments in Hong Kong or on the mainland, as well as for projects listed or issued in the financial center.
Hong Kong’s stablecoin landscape
As noted by Bloomberg, the Hong Kong Monetary Authority (HKMA) is expected to grant the first batch of stablecoin issuer licenses in early 2026. However, some industry players believe the regulator’s timeline could be delayed.
As Bitcoinist reports, the People’s Bank of China (PBOC) and other top financial regulators have recently asserted that stablecoins are not legal tender on the mainland because they do not meet regulatory requirements and risk being used for illegal purposes.
Following the statement, several analysts suggested that the PBOC’s recent statements not only dashed hopes that Beijing might have softened its stance on cryptocurrencies, but would also affect Hong Kong’s efforts to become a hub for the stablecoin industry.
Earlier this year, the HKMA promulgated the Stablecoins Ordinance, which directs any person or entity seeking to issue a fiat-referenced stablecoin (FRS) in Hong Kong, or any token pegged to the Hong Kong dollar, to obtain a license from the regulator.
Several companies have applied for this license, with more than 30 applications filed this year, according to local media. The list of candidates includes logistics technology company Reitar Logtech and the overseas arm of Chinese fintech giant Ant Group.
According to Brian Tang, founding director of the Law, Innovation, Technology and Entrepreneurship Lab at the University of Hong Kong Law School, Beijing’s stance means that applicants for Hong Kong stablecoin licenses should reconsider whether the application submitted to the HKMA affects issuers and users in mainland China.
A spokesperson said the HKMA was reviewing applications and considering starting with a reduced number of licenses. However, they noted that even if Hong Kong met the original approval schedule, projects involving the yuan or mainland Chinese institutions would likely be delayed.
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