The Hong Kong Insurance Authority has proposed a series of new regulations to guide the flow of insurance capital to assets such as cryptocurrencies and infrastructure. This unprecedented move will redirect capital to priority areas of government development. According to a December 4 presentation seen by the media, the Insurance Regulatory Authority plans to implement 100% venture capital requirements for crypto assets. The document also shows that risk capital requirements for stablecoin investments will be determined based on fiat currencies linked to stablecoins regulated in Hong Kong. The regulator's proposal is still subject to change and will be open for public comment from February to April, after which it will be submitted to the legislature for consideration. The regulator said in a statement to the media that it has begun evaluating risk-based capital provisions this year, with the main goal of supporting the insurance industry and broader economic development. A spokesperson for the regulator said it is currently in the process of evaluating industry feedback and will submit these proposals for public consultation in due course.

The Hong Kong Insurance Authority has proposed a series of new regulations to guide the flow of insurance capital to assets such as cryptocurrencies and infrastructure. This unprecedented move will redirect capital to priority areas of government development. According to a December 4 presentation seen by the media, the Insurance Regulatory Authority plans to implement 100% venture capital requirements for crypto assets. The document also shows that risk capital requirements for stablecoin investments will be determined based on fiat currencies linked to stablecoins regulated in Hong Kong. The regulator's proposal is still subject to change and will be open for public comment from February to April, after which it will be submitted to the legislature for consideration. The regulator said in a statement to the media that it has begun evaluating risk-based capital provisions this year, with the main goal of supporting the insurance industry and broader economic development. A spokesperson for the regulator said it is currently in the process of evaluating industry feedback and will submit these proposals for public consultation in due course.