Hong Kong Proposes New Insurance Rules for Crypto Assets and Infrastructure Investments

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Hong Kong’s Insurance Authority has proposed new rules to allow insurance funds to invest in crypto assets and infrastructure. The plan includes a 100% risk capital requirement for crypto, while stablecoin rules depend on their peg. The regulator also offers capital benefits for infrastructure projects in Hong Kong, mainland China, or the Northern Metropolis. Public consultation will run from February to April next year. Hong Kong’s insurance industry collected about HKD 635 billion in premiums by 2024. What is the impact of these rules on the crypto market remains to be seen.
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