Hong Kong Will Encourage 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 institutional crypto adoption in Asia.

The proposed regulation imposes a 100% risk liability 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 run from February to April 2025. Legislative applications are expected to be submitted by the end of the year.