Ethereum

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<div class="key-points-section">
 Key Points:
 <ul>
 <li>Hong Kong drafts insurance fund crypto regulation with a 100% risk weight.</li>
 <li>Public consultation scheduled for early 2026.</li>
 <li>Proposal affects insurance fund allocation to crypto assets.</li>
 </ul>
</div>
The Hong Kong Insurance Authority (IA) has drafted new regulations as of December 22, guiding insurance funds towards crypto assets and local infrastructure, with public commentary open until April 2026.
The draft imposes 100% risk weight on crypto assets, signaling regulatory scrutiny and stability focus, potentially influencing investment strategies within the insurance sector.
<h2 id="hong-kong-proposes-100-risk-weight-on-cryptocurrencies">Hong Kong Proposes 100% Risk Weight on Cryptocurrencies</h2>
The Hong Kong Insurance Authority has taken a pivotal step by drafting new guidelines to regulate how insurance funds can invest in <a href="https://coincu.com/news/china-crypto-comprehensive-governance/" rel="noopener noreferrer nofollow">cryptocurrency assets</a>. These regulations propose placing a 100% risk weight on cryptocurrencies and varying risk weights on stablecoins based on <a href="https://www.hkma.gov.hk/eng/key-functions/international-financial-centre/stablecoin-issuers/" rel="noopener noreferrer nofollow">fiat currency pegs</a>.
Immediate implications of this move may alter the approach insurers take towards including crypto in their portfolios. The draft will be open for public comment from February to April 2026, before proceeding to the legislative process.
<blockquote>
 No relevant quotes found from key players or leadership regarding the December 22 draft from the Hong Kong Insurance Authority on insurance funds and crypto assets.
</blockquote>
<h2 id="ethereum-market-insights-amid-regulatory-developments">Ethereum Market Insights Amid Regulatory Developments</h2>
Did you know? The insurance sector in Hong Kong has historically been cautious with high-risk investments, meaning this engagement with cryptocurrencies marks a notable shift in approach.
Ethereum, identifiable by the symbol ETH, has achieved a current price of $3,022.13, as per CoinMarketCap, maintaining a market cap of $364.76 billion. With a 24-hour trading volume experiencing an 82.44% increase, Ethereum shows a 1.55% price gain over 24-hours, though a 27.73% decline over 90 days, reflecting significant volatility.
<figure class="wp-block-image aligncenter size-large">
 <a href="https://coincu.com/wp-content/uploads/2025/12/Ethereum-daily-chart-on-0413-UTC-on-December-22-2025file.jpeg" rel="noopener noreferrer nofollow"> <img src="https://coincu.com/wp-content/uploads/2025/12/Ethereum-daily-chart-on-0413-UTC-on-December-22-2025file.jpeg" alt="ethereum-daily-chart-2285" class="wp-image-384831"> </a>
 <figcaption class="wp-element-caption">
 Ethereum(ETH), daily chart, screenshot on CoinMarketCap at 04:13 UTC on December 22, 2025. Source: <a href="https://coinmarketcap.com/currencies/ethereum/" rel="noopener noreferrer nofollow">CoinMarketCap</a>
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<a href="https://cms.law/en/int/expert-guides/cms-expert-guide-to-crypto-regulation/hong-kong" rel="noopener noreferrer nofollow">Coincu research</a> forecasts that the draft regulations could notably shape financial stability, especially influencing insurers' risk assessments and <a href="https://coincu.com/analysis/eth-targets-3kbut-can-the-2-5k-support/" rel="noopener noreferrer nofollow">investment strategies</a>. The enforced risk weights aim to mitigate exposure to market volatility, potentially inspiring similar measures globally.
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 <td>DISCLAIMER:&nbsp;The information on<a href="https://coincu.com/" rel="noopener noreferrer nofollow"> this website</a> is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.</td>
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</figure> <a href="https://coincu.com/uncategorized/hong-kong-insurance-crypto-regulations/" rel="noopener noreferrer nofollow">Read original article on coincu.com</a>

Hong Kong Proposes Crypto Regulations for Insurance Funds

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