Hong Kong unveils regulations for insurance funds to invest in cryptocurrency and infrastructure industries.

Proposed Investment Rules: The Hong Kong Insurance Authority has proposed new regulations allowing insurance funds to invest in cryptocurrencies and infrastructure, with a focus on sectors prioritized by the government.

Risk Charges on Crypto Assets: The regulator plans to implement a 100% risk charge on crypto assets and will also apply risk charges to investments in stablecoins based on their linked fiat currencies.

Feedback and Legislative Process: The proposed rules will be open for industry feedback from February to April next year before undergoing legislative processes, with the aim of establishing a clear framework for crypto assets and stablecoins.

Infrastructure Investment Incentives: The proposal includes capital incentives for investments in local infrastructure projects, such as the Northern Metropolis, to support the government's efforts in economic growth and budget deficit management.