Hong Kong Proposes Allowing Insurers to Invest Capital in Crypto and Infrastructure

Hong Kong’s Insurance Authority (HKIA) has unveiled a proposal that would permit insurance companies to invest a portion of their capital in digital assets, including cryptocurrencies, as well as other higher-risk opportunities such as infrastructure projects.

Under the proposed framework, insurers would be required to apply a 100% risk charge to these investments. In practical terms, this means companies must fully back every dollar invested in crypto or other approved assets with an equivalent amount of capital, ensuring policyholder funds remain protected.

According to a Bloomberg report, stablecoin investments would be treated differently depending on their structure. Risk charges for stablecoins would be determined based on the fiat currency to which they are pegged, reflecting their underlying risk profile.

As of June 2025, the HKIA lists 158 authorized insurers operating in Hong Kong. While comprehensive data on the total size of the sector is not immediately available, the latest figures from 2024 show that the city’s insurance industry generated total gross premiums of approximately $81.69 billion, highlighting the scale of the market potentially affected by the proposal.

Hong Kong Accelerates Its Digital Finance Strategy
The timing of the initiative aligns with Hong Kong’s broader push to strengthen its financial sector and position itself as a leading hub for digital assets in Asia. In November, “Fintech 2030,” a five-year plan launched by Hong Kong Monetary Authority, introduced tokenization as the key to revamping their financial system. In their plan, they have listed over 40 initiatives in various fields such as data infrastructure, artificial intelligence, resilience, and tokenized finance.

During the same time, there were reports that the Securities and Futures Commission was mulling relaxing rules on cryptocurrency trade. The proposed measures include allowing licensed virtual asset trading platforms to share global order books with their offshore affiliates. This means that companies incorporated in Hong Kong would become regional liquidity centers.

If approved, the new investment regime would enable well-capitalized insurers such as AIA, one of the world’s largest insurance companies to explore cryptocurrency and stablecoin strategies. This could include establishing digital asset treasuries or taking equity stakes in government-backed infrastructure projects, further integrating digital assets into Hong Kong’s financial ecosystem.