Overview
- Documents dated December 4 and reviewed by Bloomberg outline an Insurance Authority framework that would permit insurer investments in cryptocurrencies and select infrastructure projects.
- Direct cryptocurrency holdings would carry a full 100% capital risk charge, while Hong Kong‑regulated stablecoins would receive lower, fiat‑linked risk treatment.
- The regulator is collecting industry feedback now, with a public consultation window planned for February to April 2026 before any legislative submission.
- The draft includes capital incentives for investments tied to Hong Kong or mainland priorities such as Northern Metropolis, though some industry voices say eligible projects are too limited.
- Hong Kong counts 158 authorized insurers and HK$635 billion in 2024 gross premiums, and the HKMA expects to issue the first stablecoin licenses in early 2026.