Overview
- The Insurance Authority’s December 4 draft, reported by Bloomberg, would permit insurer crypto exposure with a full 100% risk capital charge and give Hong Kong‑regulated stablecoins fiat‑linked treatment.
- The proposal also offers capital incentives for investments in Hong Kong and mainland infrastructure, including Northern Metropolis projects.
- A consultation window is planned for February through April 2026, with legislative submissions to follow, and the measures remain subject to change based on industry feedback.
- Hong Kong’s insurance market counted 158 authorized insurers as of June 2025 and recorded about HK$635 billion ($82 billion) in gross premiums in 2024, signaling the potential scale even with cautious allocations.
- The Hong Kong Monetary Authority expects to issue initial stablecoin licenses in early 2026, while insurers and stakeholders flag custody, accounting, cybersecurity, and limited eligible projects as practical hurdles.