Bloomberg: Hong Kong plans to introduce new rules for insurance companies' investments in crypto assets and infrastructure.

According to Mars Finance, the Hong Kong Insurance Authority has proposed new regulations aimed at guiding insurance funds into the crypto asset and infrastructure sectors. A presentation document dated December 4th shows that the regulator plans to impose a 100% risk capital requirement on crypto assets, while the risk capital requirement for stablecoin investments will be determined based on the fiat currency pegged to the stablecoin regulated in Hong Kong. The Hong Kong Insurance Authority stated that it initiated a review of the risk capital regime this year, with the primary objective of supporting the insurance industry and broader economic development. The proposal is expected to undergo public consultation from February to April next year, followed by legislation. Furthermore, the new regulations also address infrastructure investment incentives, proposing capital concessions for investments in infrastructure projects in Hong Kong, mainland China, or those linked to Hong Kong (such as new town developments in the Northern Metropolitan Area), to support the Hong Kong SAR government's local infrastructure development plans. As of 2024, the total premium income of the Hong Kong insurance industry is estimated at approximately HK$635 billion.