The Hong Kong Insurance Authority plans to formulate new regulations to guide insurance funds in investing in encryption assets and infrastructure.

According to Techub News, Bloomberg reports that the Hong Kong Insurance Authority has proposed new regulations aimed at guiding insurance funds into encryption assets and infrastructure sectors. According to a presentation document dated December 4, the regulatory agency plans to impose a 100% risk capital requirement on encryption assets, while the risk capital requirement for stablecoin investments will depend on the fiat currency to which the stablecoin is pegged as regulated by Hong Kong. The Hong Kong Insurance Authority stated that it has initiated a review of the risk capital system this year, with the primary goal of supporting the insurance industry and broader economic development. The proposal is expected to undergo public consultation between February and April next year, followed by submission for legislation. Additionally, the new regulations also involve incentives for infrastructure investment, proposing capital advantages for investments in infrastructure projects in Hong Kong, Mainland China, or projects pegged to Hong Kong (such as new town developments like the Northern Metropolis) to support the local infrastructure development plans of the SAR government. As of 2024, the total premium income of the Hong Kong insurance industry is approximately 635 billion HKD.