Hong Kong Opens Crypto Door to 158 Insurers, $82B Premiums on the Line
Hong Kong is taking a cautious step towards allowing insurance companies to invest some of their money in digital assets.
Quick overview
- Hong Kong's Insurance Authority has introduced rules allowing insurers to invest in digital assets like cryptocurrencies and infrastructure projects.
- Insurers must reserve 100% of the value of their crypto investments, while stablecoins have varying capital requirements based on their underlying currency.
- The public is invited to provide feedback on the draft plan, which may undergo changes before final approval due to concerns from insurers about qualifying projects.
- These regulations are part of Hong Kong's broader strategy to integrate digital assets into its financial system while maintaining market stability.
Hong Kong is taking a cautious step towards allowing insurance companies to invest some of their money in digital assets. The city’s Insurance Authority has issued rules that would allow insurers to include cryptocurrencies and infrastructure projects on their balance sheets.
According to a Bloomberg report, this is the first real set of rules outlining how insurers can legally use crypto. This proposed rule is just one part of a broader push to update Hong Kong’s rules on how much risk insurance companies must hold while ensuring they don’t take on too much.
The High Price of Getting in on Crypto
The so-called draft framework has some pretty strict rules about how much money the insurance companies need to have in reserve for their crypto investments:
🇭🇰 JUST IN: Hong Kong plans to allow insurers to hold Bitcoin and other crypto assets on their balance sheets. pic.twitter.com/W5a0w8OgMR
— The Crypto Times (@CryptoTimes_io) December 22, 2025
- If an insurance company invests in crypto, it has to put aside 100% of the value of that investment – that is to say, it has to have enough capital to cover the full value of what it’s invested in.
- But stablecoins are treated a bit differently, and the amount of risk capital required depends on the underlying currency it’s pegged to, provided that the issuer is actually regulated here in Hong Kong.
- Meanwhile, if they invest in infrastructure projects near Hong Kong or the mainland, they might get some relief on their capital requirements.
Hong Kong is now inviting the public to give their feedback on this draft plan, which will then go through the legislative process. Some insurers have already said they’re worried there are very few projects that qualify under these rules, which might mean they’ll make some changes before they’re finally approved.
Hong Kong Goes All In On Digital Assets
The new rules fit right in with Hong Kong’s plan to let digital assets really take off. Some key bits of this plan include:
🚨JUST IN: HK INSURANCE AUTHORITY TO ALLOW CRYPTO INVESTMENTS
The Hong Kong Insurance Authority plans to allow insurers to invest in crypto, with a 100% risk charge on crypto assets and fiat-based charges for stablecoins as per Bloomberg. pic.twitter.com/MfC0KAHGhT
— Coin Bureau (@coinbureau) December 22, 2025
- A stablecoin licensing regime kicking in in August of 2025, requiring companies to have paid-up capital of at least HK$25 million and fully backed tokens.
- They’re expecting the first licensees to show up in the early part of 2026.
- There’s also been recent growth in crypto activity here in Hong Kong, including HashKey’s recent listing on the stock market and ongoing tokenization pilots.
As of last June, Hong Kong had 158 authorized insurance companies, raking in roughly HK$635 billion (about $82 billion USD) in gross premiums. Even if insurance companies allocate only a small portion of this money to crypto or infrastructure projects, it could still have a significant impact on the market. But the high-risk charges show just how cautious the regulators are about moving too fast.
With all this, Hong Kong is taking a deliberate approach to bringing digital assets into the financial system, trying to balance giving companies the freedom to invest with ensuring the market stays stable.
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