Hong Kong Insurance Authority Drafts New Crypto Asset Risk Framework
- The Hong Kong Insurance Authority proposed a framework with a 100% risk charge on crypto assets.
- Public consultation on the risk-based capital regime is set from February to April.
- The framework aims to channel insurer capital into cryptocurrencies, stablecoins, and infrastructure investments.
The Hong Kong Insurance Authority has unveiled a draft framework that imposes a significant risk charge on crypto assets while incentivizing infrastructure investments. This move will be open for public consultation early next year, reflecting a strategic shift in how insurer capital might be allocated towards digital assets and infrastructure.
By proposing a 100% risk charge on crypto assets, the authority signals caution in handling digital currencies while encouraging investment in stable financial structures like infrastructure projects. (Source)
