Hong Kong Insurance Authority Proposes 100% Crypto Risk Charge; Tiered Stablecoins
In a draft dated Dec. 4, Hong Kong's Insurance Authority outlined a capital framework permitting insurers limited crypto exposure while imposing a 100% risk charge on unbacked assets. A public consultation is expected between February and April. Regulated stablecoins would face tiered charges linked to fiat backing, with participation likely constrained by high capital demands.