The Hong Kong Insurance Regulator presented a draft capital framework position reportedly proposed on December 4. The document includes a 100% risk charge on crypto assets and a special methodology for calculating charges on stablecoins, as well as incentives for infrastructure investments.
The regulator plans to open a public consultation on this initiative from February to April 2026 to gather feedback from market participants and the public. The changes aim to help direct insurance capital into cryptocurrencies, stablecoins, and infrastructure projects related to Hong Kong.
New Capital Rules for Crypto Assets
A key provision of the draft is the introduction of a 100% risk charge on crypto assets. This means that when calculating capital requirements, the portion of crypto assets will be subject to the full risk rate specified in the draft.
For stablecoins, the draft provides separate charges linked to the fiat currency peg, distinguishing them from other digital assets. The authors of the document also emphasize the connection of the new rules with the goal of promoting sustainable growth of the insurance sector and the overall economic development of the city.
Public Consultations and Feedback
The public consultation period is set from February to April 2026; the regulator intends to collect comments from the industry and society during this interval. A regulator representative noted that the feedback collection phase is ongoing and proposals will be brought to public discussion at the designated time.
The consultations give market participants the opportunity to ask questions about the methodology for calculating risk charges and the proposed incentives for infrastructure investments. Depending on the comments received, the regulator may refine certain provisions of the draft.
Infrastructure Investments
The draft proposes capital incentives for investments in infrastructure related to Hong Kong, including initiatives such as Northern Metropolis. These incentives are designed as a tool to direct part of the insurance capital towards local or Mainland China–related projects.
The document’s authors link these measures to the overall goal of supporting the city’s economic development and gradually transforming Hong Kong into a digital finance hub. Specific incentive mechanisms and the list of projects will be clarified during the consultations.
Impact on Insurance Companies
It is estimated that approximately 158 authorized insurers are covered by the proposal, with total premiums amounting to about HK$635 billion in 2024. For these companies, the change in capital requirements means the need to revise asset allocation strategies and risk management.
How the industry adapts to the new rules depends on the consultation outcomes and the regulator’s final decisions. Prospects include discussions on which assets will be recognized as eligible for preferential capital treatment and under what conditions.
Why This Matters
If you mine in Russia with a small park of 1–1000 devices, these rules do not directly affect you because they target insurance companies in Hong Kong. However, indirect effects are possible: changes in incentives for infrastructure investments and crypto asset accounting rules for insurers may impact the availability of products related to digital assets.
For miners, this means it is worth monitoring the situation if you use insurance services, invest through financial products, or rely on the development of infrastructure projects in the region. Understanding the direction of regulatory changes helps assess long-term risks and opportunities for storing or insuring funds.
What to Do?
- Follow the consultation: subscribe to regulator news and financial publications to receive notifications about the consultation results in February–April 2026.
- Check insurance contracts: clarify with your insurer or broker whether crypto assets are covered and if conditions will change with the new rules.
- Document asset storage: keep records of where and how your cryptocurrencies are stored to provide proof of ownership or control if necessary.
- Assess counterparties: when using financial products related to infrastructure or insurance, verify how regulatory changes might affect their reliability.
- Avoid hasty decisions without information: wait for the public consultation results and official regulator instructions before making major financial moves involving institutional products.
