Hong Kong Proposal to Let Insurers Invest Capital in Crypto

Key Notes

• Hong Kong is proposing to allow insurers to invest in crypto and infrastructure projects, with a 100% risk charge to protect policyholder funds.
• Regulated stablecoins will be assessed risk charges based on the underlying fiat currency rate.
• This initiative aligns with Hong Kong’s “Fintech 2030” strategy to transform the nation into a global digital asset hub and liquidity center for institutional capital.

The Hong Kong Insurance Authority recently announced its intent to allow insurance providers to invest capital in digital assets such as cryptocurrency and other risk ventures such as infrastructure.

Under the proposal, insurance providers would pay a 100% risk charge, meaning they’d have to match every dollar invested in crypto or other approved vehicles 1-for-1 as a means to avoid risking policyholder funds.

According to a report from Bloomberg, stablecoin investments would attract risk charges based on the fiat currency they’re pegged to.

The Hong Kong Insurance Authority website indicates that there were 158 authorized insurers in Hong Kong as of June 2025. While exact figures concerning the size of the total market weren’t readily available, the most recent data on market revenue comes from 2024, when the HKIA reported total gross premiums of the Hong Kong insurance industry in the amount of $81.69 billion.

Hong Kong Rapidly Expanding Its Digital Economy

The timing of the proposal is significant, as Hong Kong is currently undergoing a massive effort to shore up its financial sector and establish itself as a nexus point for the Asian digital assets market.

As Coinspeaker reported in November, the Hong Kong Monetary Authority launched “Fintech 2030,” a five-year strategy featuring tokenization as a core pillar for advancing the city’s financial sector. The plan’s roadmap includes over 40 initiatives across the areas of data infrastructure, AI, resilience, and tokenization.

Also in Nov., Hong Kong’s Securities and Futures Commission was reportedly considering easing restrictions on cryptocurrency trading and allowing locally licensed virtual-asset trading platforms (VATPs) to share global order books with international affiliates, effectively allowing Hong Kong-headquartered firms to serve as liquidity hubs. This move would also serve to bring VATP regulations in line with Hong Kong’s relative Trad-Fi laws.

Under the new regime, Hong Kong insurers with the standing capital to back their own investments, such as AIA, the seventh largest insurance firm by global market cap, will be able to participate in both cryptocurrency and stablecoin investment strategies, including adopting digital treasuries or gaining a corporate stake in government-backed infrastructure projects.

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