Hong Kong will encourage investment in digital assets.

Innovative Proposal for the Insurance Sector from Hong Kong

Hong Kong is reviewing new regulations aimed at enabling insurance companies to invest in digital assets. This move seeks to increase institutional crypto adoption in Asia.

The proposed regulation imposes a 100% risk requirement if insurance firms hold crypto assets directly. This requires insurers to set aside one dollar for every dollar invested.

The public consultation process regarding the proposal will take place from February to April 2025. Legislative applications are expected to be submitted by the end of the year.