The Hong Kong insurance regulatory authority has recently taken significant action. According to the latest proposal, they plan to open investment channels for insurance funds, including emerging asset classes such as Crypto Assets and infrastructure.

How exactly should it be regulated? The regulatory framework clearly defines Crypto Assets - managed according to a 100% risk capital provisioning standard, which means that insurance institutions need to hold sufficient risk reserves when investing in Crypto Assets. On the other hand, the regulations for stablecoins are more flexible and will apply corresponding risk capital requirements based on the type of fiat currency each stablecoin is pegged to.

This plan appears to be quite detailed from the documents, as it opens up investment space while controlling risks through a differentiated risk management framework. For insurance institutions, there is finally a clear policy guideline; for the Crypto Assets market, this also represents the gradual entry of traditional financial institutions.