The Hong Kong Insurance Authority (HKIA) has launched a brand new legal framework that allows the town’s 158 licensed insurance companies to speculate their vital capital in cryptocurrencies and infrastructure initiatives.
This proposal, outlined within the regulator’s presentation on December 22, 2025, marks a historic transition in direction of directing personal insurance capital—totalling round $82bn in premium income final 12 months—into sectors prioritised by the federal government. By establishing a proper pathway for incorporating digital property into their stability sheets, Hong Kong goals to outpace different main monetary hubs in attracting institutional cryptocurrency adoption.
Central to the HKIA’s proposal is a stringent 100% risk-based capital requirement for instantly holding cryptocurrencies. In line with the town’s Threat-Primarily based Capital (RBC) regime, insurance companies should keep an equal greenback in working capital as a reserve for each greenback of Bitcoin or Ethereum they maintain. Whereas this excessive requirement classifies cryptocurrencies as a “capital-intensive” asset class, it establishes the primary clear legal framework for insurance companies to enterprise past conventional shares and bonds.
In distinction, stablecoins are anticipated to obtain extra beneficial remedy; investments in stablecoins which are regulated in Hong Kong will incur danger charges primarily based on the particular fiat currencies to which they’re pegged. This adjustment considerably lowers the boundaries for insurance companies seeking to utilise digital {dollars} for funds or liquidity administration.
The HKIA emphasised that these laws are at present within the suggestions section and will endure revisions.
A proper public session interval is anticipated to happen from February to April 2026, permitting insurance companies and stakeholders to supply enter on danger weighting and the sorts of eligible initiatives.
