Hong Kong proposes new rules to tap insurance capital into cryptocurrencies

Hong Kong proposes new rules to tap insurance capital into cryptocurrencies Public consultation on the proposal will occur from February to April 2025, with legislative submissions expected later that year. What to know: Hong Kong is considering new rules to allow insurers to invest in digital assets, potentially boosting institutional crypto adoption in Asia. The proposal mandates a 100% risk charge on direct crypto holdings, requiring insurers to reserve a dollar for every dollar invested. Public consultation on the proposal will occur from February to April 2025, with legislative submissions expected later that year. Hong Kong is plotting a move to unlock a multi-billion dollar capital pool for digital assets and related infrastructure, potentially marking a watershed moment for institutional crypto adoption in Asia. Hong Kong proposes new rules. (Chris Lam/CoinDesk) The Hong Kong Insurance Authority (IA ) is proposing new rules that would allow the city’s 158 authorized insurers to channel funds into assets, including cryptocurrencies, according to a Dec. 4 presentation seen by Bloomberg . While the proposal signals an institutional thaw toward crypto, the regulator is still keeping its guard up with a conservative risk framework. The proposal requires insurers to keep aside a dollar in reserve for every dollar invested in crypto, representing a 100% "risk charge" on direct crypto asset holdings. This is a heavy capital requirement mandated as buffer agains digital assets' renowned volatility. Stablecoins, however, would attract risk charges based on the fiat currency they are pegged to, the Bloomberg report said. The Hong Kong Monetary Authority is expected to issue first stablecoin licenses in early 2026. The industry won't have to wait long for a formal look at the text as the Insurance Authority is set to open the proposal for public consultation from February through April 2025, followed by legislative submissions later in the year. our standards . For more information, see CoinDesk's full AI Policy . More For You Protocol Research: GoPlus Security What to know: As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M. GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month. Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B. More For You State of Crypto: Trying to figure out the market structure bill's prognosis Will we get this bill after all?

Preview: ~465 words