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 aims to increase institutional cryptocurrency adoption in Asia.

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

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