The Hong Kong Insurance Authority is proposing a slate of new rules to channel insurance capital into assets, including cryptocurrencies and infrastructure.

The insurance regulator would impose a 100 percent risk charge on crypto assets, according to a presentation on Dec 4 seen by Bloomberg News. Stablecoin investments would attract risk charges based on the fiat currency the Hong Kong-regulated stablecoin is pegged to, the document showed.

The regulator’s proposal, which could still change, will be open for public consultation from February through April, followed by legislative submissions.

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In a statement to Bloomberg News, the regulator said it has commenced a review on the risk-based capital regime this year with a primary objective to support the insurance industry and wider economic development.

“We are at the stage of gauging industry feedback and will also put the proposals for public consultation in due course,” a spokesperson with the regulator said.

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The Hong Kong Special Administrative Region has been actively building a framework to support the development of crypto assets and stablecoins as part of its strategy to become a top digital finance hub. The Hong Kong Monetary Authority expects to grant the first batch of stablecoin approvals early next year.

The insurer framework also touches on infrastructure, as Hong Kong seeks new growth.

For infrastructure, the regulator proposes capital incentives for investing in the Hong Kong SAR or the Chinese mainland, or projects listed or issued in the financial hub. Eligible projects include new towns and urban area developments in the city such as the Northern Metropolis. One objective for such a proposal is to support the government’s initiatives for local infrastructure development, according to the presentation.

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As of June, there were 158 authorized insurers in the city. Together, the total gross premiums of the Hong Kong insurance industry stood at about HK$635 billion ($82 billion) in 2024.