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The Hong Kong Stock Exchange (HKEX)&nbsp;<a style="text-decoration:none" href="https://www.hkex.com.hk/News/News-Release/2024/241028news?sc_lang=zh-HK">announced</a> the launch of the&nbsp;Hong Kong Exchange Virtual Asset Index Series.&nbsp;
Scheduled for release on November 15, 2024, this series will serve as a unified benchmark for Bitcoin and Ethereum, addressing regional pricing gaps in these widely traded assets. This initiative aims to provide consistent and reliable pricing within the Asian time zone (UTC+8), enhancing transparency for investors in the region.
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Cryptocurrency prices have historically fluctuated widely across global exchanges due to various factors like liquidity and regional demand. For investors in Asia, this new series reportedly provides a clear, consistent pricing framework that factors in data from several exchanges.&nbsp;
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Notably, the indices will be available in United States dollars (USD), giving a universally accepted valuation standard that transcends currency fluctuations and local economic influences.
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HKEX also aims to attract institutional investors by offering a standardized benchmarking system and high transparency.
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The move reflects HKEX's ambition to become an Asia Pacific (APAC) hub for digital finance, especially as digital assets gain popularity worldwide.
<h2 dir="ltr" id="span-span-a-unified-reference-price-for-bitcoin-and-ethereum-span-span">A Unified Reference Price for Bitcoin and Ethereum</h2>
The HKEX Virtual Asset Index Series is designed to deliver a volume-weighted, real-time pricing benchmark for Bitcoin (BTC) and Ethereum (ETH), derived from aggregated data from leading global crypto exchanges. According to Nicolas Aguzin, CEO of Hong Kong Exchanges and Clearing Limited:
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 "We are pleased to introduce the Hong Kong Exchange Virtual Asset Index Series to meet the regional demand for this rapidly emerging asset class. By providing transparent and reliable real-time benchmarks, we hope to assist investors in making informed decisions, supporting the healthy development of the virtual asset ecosystem."
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Aguzin believes that a reliable and standardized benchmark will address existing price discrepancies across exchanges, giving traders and institutions in Asia a stable reference.
<h2 dir="ltr" id="span-span-tax-breaks-and-licensing-for-crypto-investments-span-span">Tax Breaks and Licensing for Crypto Investments</h2>
In parallel with this index launch, Hong Kong regulators are introducing supportive policies for digital asset investment.&nbsp;
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Hong Kong’s Secretary for Financial Services and the Treasury, Christopher Hui, announced a proposed tax break for digital asset investments according to an Oct. 28&nbsp;<a style="text-decoration:none" href="https://www.bloomberg.com/news/articles/2024-10-28/hk-unveils-ai-policy-for-finance-floats-tax-breaks-for-crypto?srnd=phx-crypto">Bloomberg report</a>. This legislation, expected by the end of 2024, could reduce taxes for citizens who hold crypto assets.&nbsp;
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Hui noted that this move reinforces Hong Kong’s commitment to being an attractive jurisdiction for asset allocation.
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Additionally, the Hong Kong Securities and Futures Commission (SFC) is preparing a finalized list of fully licensed crypto exchanges by year-end, with plans for a regulatory panel to review licensing in early 2025. Per reports, with this framework, over-the-counter (OTC) trading and custodial services will be more secure and compliant.
<h2 dir="ltr" id="span-span-stablecoin-regulation-and-future-developments-span-span">Stablecoin Regulation and Future Developments</h2>
Hong Kong’s de facto central bank, the Hong Kong Monetary Authority (HKMA), has announced plans to introduce stablecoin legislation by year-end. This legislation follows the HKMA’s&nbsp;<a style="text-decoration:none" href="https://www.hkma.gov.hk/eng/news-and-media/press-releases/2024/03/20240312-4/">stablecoin regulatory sandbox</a>, launched in March 2024, which encourages innovation while monitoring potential risks in stablecoin use.
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Stablecoin regulation by the HKMA is part of Hong Kong's proactive approach to creating a regulated environment for digital assets.&nbsp;

Hong Kong Stock Exchange to Launch Unified Bitcoin and Ethereum Index

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