Hong Kong proposes legislation to allow insurers to invest in crypto

The Hong Kong Insurance Authority (HKIA) has released a legislative proposal that would allow insurance capital to be invested in cryptocurrencies and related infrastructure, Bloomberg reported. The proposal includes a 100% risk weighting for cryptocurrencies, while the weighting for stablecoins would depend on their underlying pegged assets. The plan is scheduled for public and industry consultation from February to April 2026, after which it will be submitted to the legislature. Bloomberg added that Hong Kong has been actively developing regulations to support cryptocurrency and stablecoin development as part of its push to become a digital finance hub.