#HongKong Proposes 100% Risk Charge on #Crypto Assets


Hong Kong's insurance regulator is drafting capital rules that would apply a 100% risk charge to insurers' crypto asset exposure while steering capital toward #cryptocurrencies and government infrastructure projects. The Hong Kong Insurance Authority released the framework proposal in a Dec. 4 document seen by Bloomberg.


Stablecoin investments would receive risk charges matching their underlying fiat currency if the #stablecoins operate under Hong Kong regulatory jurisdiction. The proposal remains subject to revision, with public consultation expected from February through April. The regulator plans to submit measures for legislative consideration after the consultation period.


The Insurance Authority stated it began reviewing its risk-based capital regime earlier this year to support both the insurance sector and broader economic development. A spokesperson said that the review covers capital treatment proposals that consider the latest regulatory developments for stablecoins and crypto assets. The regulator is gauging industry feedback before public consultation.

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December 22, 2025 at 3:18 PM