Hong Kong will Promote Investment in Digital Assets.

Innovative Proposal for the Insurance Sector from Hong Kong

Hong Kong is reviewing new regulations to enable insurance companies to invest in digital assets. This move aims to increase corporate cryptocurrency adoption in Asia.

The proposed regulation imposes a 100% risk requirement if insurance firms hold cryptocurrency assets directly. This means that insurers are required 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 made by the end of the year.