Crypto may enter insurers’ portfolios as Hong Kong reviews capital rules

cointelegraphPublicado a 2025-12-22Actualizado a 2025-12-22

Resumen

The Hong Kong Insurance Authority is proposing to allow insurance companies to allocate capital to cryptocurrencies and infrastructure projects. Under the proposal, crypto investments would be subject to a 100% risk charge, requiring insurers to hold regulatory capital equal to the full value of their crypto holdings. The move is part of a broader review of the risk-based capital regime to support the industry and economic development. This follows a global trend, as the EU has proposed similar capital rules, and insurers like MassMutual and Allianz have already made crypto investments. Hong Kong has been actively developing its crypto regulatory framework, including stablecoin rules and a fintech strategy focused on tokenization, despite mainland China's continued restrictions on crypto activities.

The Hong Kong Insurance Authority is reportedly proposing to allow insurance capital allocation to cryptocurrencies and infrastructure projects.

Bloomberg reported on Monday that the city’s regulator started reviewing the risk-based capital regime to support the insurance industry and economic development.

Crypto allocations would be subject to a 100% risk charge, meaning that the insurer would need regulatory capital roughly equal to the full value of its crypto position.

The proposal would also allow infrastructure investment at a time when Hong Kong faces a budget deficit. Some companies that submitted feedback reportedly urged that coverage be extended broadly, noting that the current proposal has significant limitations.

A spokesperson reportedly explained that the institution is now gauging industry feedback and will initiate public consultation later.

The Hong Kong Insurance Authority did not respond to Cointelegraph’s media inquiry.

Hong Kong Insurance Authority headquarters. Source: Ceeseven, CC BY-SA 4.0

Related: China Merchants Bank tokenizes $3.8B fund on BNB Chain in Hong Kong

Insurance investment in crypto moves out of the fringe

Insurance companies investing in cryptocurrencies is increasingly becoming more popular. In March, the European Union’s insurance authority proposed a blanket rule that would require insurance companies to maintain capital equal to the value of their crypto holdings, similar to the reported Hong Kong rule.

Some insurance companies are also using cryptocurrency to achieve their goals.

In March, Barbados-based insurer Tabit raised $40 million in Bitcoin (BTC) to bolster its balance sheet and back traditional insurance policies.

Germany’s largest insurance company Allianz invested in a convertible note offering by leading Bitcoin treasury company Strategy in November last year.

Still, the earliest players moved much sooner.

At the end of 2020, Massachusetts-based insurance firm MassMutual purchased $100 million in Bitcoin for its general investment account. At the time, this was about 5,470 BTC for $18,279 per coin.

At the current price of over $89,000, that would be worth over $488 million.

Related: Hong Kong rules limit stablecoin derivatives trading: DBS CEO

Hong Kong takes crypto seriously

Hong Kong has been paying particular attention to the cryptocurrency industry recently. In November, the Hong Kong Monetary Authority (HKMA) unveiled its Fintech 2030 strategy. It includes real-world assets and tokenization, a rising crypto trend that is drawing global institutional interest.

Hong Kong started enforcing its stablecoin rules in August, reportedly drawing applicants from mainland China banks.

However, Beijing has not warmed up to crypto-related initiatives. Key activities related to crypto, such as mining and trading, are prohibited on the mainland.

In August, Chinese regulators reportedly told local firms to stop publishing research or holding seminars related to stablecoins. In September, a since-removed report by finance outlet Caixin claimed mainland Chinese firms operating in Hong Kong may be forced to withdraw from cryptocurrency-related activities.

Magazine: Sei wallets in Xiaomi, Bhutan’s gold on Solana: Asia Express

Preguntas relacionadas

QWhat is the Hong Kong Insurance Authority proposing regarding insurance capital allocation?

AThe Hong Kong Insurance Authority is proposing to allow insurance capital allocation to cryptocurrencies and infrastructure projects.

QWhat risk charge would crypto allocations be subject to under the proposed rules?

ACrypto allocations would be subject to a 100% risk charge, meaning insurers would need regulatory capital roughly equal to the full value of their crypto position.

QWhich other region has proposed a similar capital requirement for insurance companies' crypto holdings?

AThe European Union's insurance authority proposed a similar blanket rule in March that would require insurance companies to maintain capital equal to the value of their crypto holdings.

QWhat significant Bitcoin investment did MassMutual make in 2020 and what would it be worth today?

AIn 2020, MassMutual purchased $100 million in Bitcoin (about 5,470 BTC at $18,279 per coin). At current prices over $89,000, that would be worth over $488 million.

QHow does Beijing's stance on cryptocurrency differ from Hong Kong's approach?

ABeijing has not warmed up to crypto-related initiatives and prohibits key activities like mining and trading on the mainland, while Hong Kong has been paying particular attention to the cryptocurrency industry with various regulatory developments.

Lecturas Relacionadas

Michael Saylor: 'We Never Said We Would Never Sell Bitcoin'

Michael Saylor stated that his company never made a commitment to never sell its bitcoin holdings, though it expects to remain a net buyer of bitcoin long-term. His comments came following reports that the company had received new authorization to sell up to $5 billion in bitcoin. Saylor clarified that this authorization is not new and was announced on June 29th as part of the company's capital management strategy. He emphasized that the authorization permits but does not obligate sales for specific purposes and that no new approval has been announced. Saylor also noted the company never officially adopted a "bitcoin will never be sold" policy.

cryptonews.ruHace 56 min(s)

Michael Saylor: 'We Never Said We Would Never Sell Bitcoin'

cryptonews.ruHace 56 min(s)

The 'Summer Saw' Continues: A Break Above $67,000 Could Signal the Start of Bitcoin's Rally

Bitcoin continues to consolidate within a $58,000–$67,000 range, with its price dropping to $62,217 on August 1st. Analysts are divided on the next direction. Trader Crypto Candy suggests a potential drop towards $60,000 if the price remains below $66,000. Investor Jelle refers to the prolonged sideways movement as a "summer saw" and maintains a dollar-cost averaging strategy. The key upside scenario hinges on a breakout above $67,000. Daan Crypto Trades states that without this, the movement risks being just an extended pause. Roman projects a sharper rise to $70,000–$80,000+ if a breakout occurs with sufficient volume. Macro-analyst Gert van Lagen views this as an accumulation phase within a multi-year "cup and handle" pattern. He notes that long-term holders are refusing to sell, as indicated by the NUPL metric staying far from capitulation. In summary, the market is in an accumulation phase, with the $60,000 and $67,000 levels being critical. A break above $67,000 could initiate significant growth, while a fall below $60,000 may lead to further decline. The recent pullback shows that legislative catalysts have provided only short-lived momentum, raising questions about the sustainability of any future breakout attempts.

cryptonews.ruHace 1 hora(s)

The 'Summer Saw' Continues: A Break Above $67,000 Could Signal the Start of Bitcoin's Rally

cryptonews.ruHace 1 hora(s)

Must-Watch Events Next Week｜CLARITY Act Could Face Senate Vote; SpaceX, Circle to Report Earnings (8.3-8.9)

**Summary: Key Events and Developments to Watch (August 3-9)** The upcoming week is marked by significant financial disclosures, key legislative deadlines, and notable product updates. **Major Financial Events:** Several companies are scheduled to release their Q2 2026 earnings. American Bitcoin (ABTC) will report on August 3, followed by SpaceX and Hut 8 Mining Corp. on August 4, and Circle on August 5. Notably, a significant portion of SpaceX shares (up to 12% of total shares) will be unlocked on August 6 following their earnings release. **Key Legislative Deadline:** The U.S. Senate faces an August 7 deadline to secure 60 votes for the CLARITY Act, a bipartisan bill aiming to establish a federal regulatory framework for cryptocurrencies. The Senate may hold a full vote on the bill during the week. **Economic Data:** The U.S. July Non-Farm Payrolls report will be released on August 7, providing crucial labor market data. **Technology & Product Updates:** * **Shutdowns:** DeFi portfolio tracker Zapper and wallet app Ctrl Wallet will cease operations on August 3. * **Upgrades:** LayerZero will deprecate its v1 relayers on August 3. XRP Ledger's new version 3.3.0, featuring five new functions, is expected next week. * **AI:** Elon Musk announced that the advanced Grok 4.6 AI model is set for release around August 7. * **Bitcoin:** The BIP-110 forced signaling for a potential Bitcoin network change is scheduled to begin around August 8. **Other Notable Events:** Chinese robotics firm Unitree Tech has set its preliminary price inquiry for its IPO for August 5. South Korean exchange Upbit will delist AQT and AERGO tokens on August 3.

marsbitHace 1 hora(s)

Must-Watch Events Next Week｜CLARITY Act Could Face Senate Vote; SpaceX, Circle to Report Earnings (8.3-8.9)

marsbitHace 1 hora(s)

Stocks Are Plummeting More Sharply Than Cryptocurrencies. Where Has the Money Gone?

Stock Markets Plunge Deeper Than Cryptocurrencies: Where Did the Money Go? In late July, Seoul's Kospi index triggered circuit breakers for two consecutive days, plummeting over 40% from its June high. The collapse was led by heavyweight stocks like SK Hynix, whose record profits still disappointed investors, and devastating leveraged ETFs, with one major product losing over 83% of its value. This signaled a global, forced deleveraging targeting the most crowded trades. Interestingly, while stocks exhibited extreme volatility akin to crypto markets, Bitcoin rose nearly 15% in July after a prior steep drop. Analysis shows the money fleeing equities did not flow into Bitcoin. Instead, Bitcoin had already absorbed its sell-off in May-June, when U.S. spot Bitcoin ETFs saw historic outflows. The true safe-haven beneficiary was gold, whose price rose over 20% year-on-year, highlighting a decoupling between Bitcoin and gold as "digital gold." The sell-off was a targeted unwinding of leveraged positions in tech and semiconductors, accelerated by broker-dealer risk management and shifts in the AI narrative, including new competition from Chinese memory chipmakers. The retreat path was clear: from high-valuation tech stocks to cash and U.S. Treasuries, then to gold. For Bitcoin to attract sustained institutional inflows, conditions like eased global liquidity pressure, a "soft-landing" Fed rate cut, and U.S. regulatory clarity via legislation like the stalled CLARITY Act are needed. Currently, Bitcoin is not a safe haven but an already-cleared asset. Its low correlation with tech stocks, however, makes it a potential diversification play for institutional portfolios once the storm passes. The money isn't here yet, but the positioning is underway.

marsbitHace 1 hora(s)

Stocks Are Plummeting More Sharply Than Cryptocurrencies. Where Has the Money Gone?

marsbitHace 1 hora(s)

In Conversation with Ray Dalio: We Are Currently in an AI Bubble, with 1% of My Portfolio in Bitcoin

Ray Dalio, founder of Bridgewater Associates, warns in an interview that the current AI boom shows classic bubble characteristics, which could lead to significant economic downturns as seen in past cycles like 1929 or 2000. He explains that speculative enthusiasm, fueled by debt and overvaluation, often precedes a crash when rising rates or taxation force asset sales, causing widespread losses and recession. Dalio also outlines his "Big Cycle" theory, describing an approximate 80-year pattern where widening wealth gaps, massive government deficits, and shifting geopolitical power (like China's rise) create internal conflict and global instability. He emphasizes that we are in a late-cycle, transitional phase where traditional powers like the US and UK face decline. For personal wealth protection, Dalio advises diversification beyond cash into assets like stocks, bonds, real estate, and particularly gold, which he prefers over Bitcoin. While he holds about 1% of his portfolio in Bitcoin as a non-printable hard asset, he views gold as more secure from technological or governmental threats. Regarding AI's impact, Dalio believes it will disproportionately benefit capital owners, worsening inequality by replacing both physical and cognitive labor. He suggests that human intuition and emotional intelligence, combined with AI, will be key for future workers. On taxation, Dalio argues that wealth taxes are impractical and risk triggering asset sell-offs, reducing productive investment. He points to the UK as a cautionary example of debt, low productivity, and political strife. Geopolitically, Dalio foresees a more regionalized world, with the US showing weakness in prolonged conflicts like with Iran, akin to past imperial declines. The ideal outcome, he suggests, is coexisting powerful blocs (e.g., Americas, China-Asia Pacific) without major war.

marsbitHace 5 hora(s)

In Conversation with Ray Dalio: We Are Currently in an AI Bubble, with 1% of My Portfolio in Bitcoin

marsbitHace 5 hora(s)

Trading

Spot
活动图片