Hong Kong Proposes Strict Crypto Risk Charges as Insurers Eye Digital Assets

Hong Kong’s insurance regulator is weighing a new capital framework that would allow insurers to allocate funds to cryptocurrencies while imposing some of the toughest risk charges seen in the market. Key Takeaways: Hong Kong plans to allow insurers limited crypto exposure while imposing a 100% capital charge on unbacked crypto assets. Regulated stablecoins would face differentiated risk charges tied to their fiat backing. The proposal reflects Hong Kong’s effort to balance digital asset growth with ...