Hong Kong has taken a big step ahead in embracing crypto because it re-opened its doorways to the world of digital property in the beginning of the month. In a bid to place itself as a number one international monetary hub for progressive applied sciences, the Hong Kong authorities, in collaboration with the Securities and Futures Fee (SFC), has launched a set of laws to manipulate the buying and selling and issuance of cryptocurrencies inside its jurisdiction.
The re-opening of Hong Kong comes after a interval of cautious analysis and session with business consultants, market members, and different stakeholders. Along with these overarching measures, the Hong Kong SFC has outlined particular necessities for retail-tradable tokens, geared toward safeguarding retail buyers. One of many measures is that the Hong Kong SFC requires retail-tradable tokens to be included in a minimum of two indices.
Hong Kong’s HKVAC Releases New Crypto Index
In view of this, a publication by the Hong Kong Digital Asset Consortium (HKVAC) is inflicting a stir at this time. The Hong Kong score company at this time introduced its digital asset index, which incorporates the next cryptocurrencies: WBTC, BTCB, stETH, Bitcoin Money, Litecoin, BNB, MATIC, Cardano (ADA), ATOM, Filecoin (FIL), NEAR, Algorand (ALGO), ICP, XRP, Dogecoin (DOGE), Polkadot (DOT), WTRX, Shiba Inu (SHIB), TRX, LINK, LEO, Monero (XMR), XLM, OKB, LDO, HBAR, VET, QNT, FTM and EOS.
HK transferring ahead. pic.twitter.com/BY4Bg6qHOu
— CZ 🔶 Binance (@cz_binance) June 27, 2023
As reported by Chinese language crypto journalist Colin Wu, the checklist is controversial in that the listed cryptocurrencies additionally embody platform tokens, privateness tokens and a lot of tokens listed as securities by the US Securities and Change Fee (SEC). In line with Wu, the establishment is backed by Hong Kong lawmakers Johnny Ng, Huobi, KuCoin and others.
On account of these controversies, the Hong Kong crypto neighborhood doesn’t imagine that the reference worth may be very excessive, as Wu explains. Since HKVAC’s index is non-governmental, and its evaluation standards are quite simple, Wu believes it’ll don’t have any impression on retail market tradability.
The primary criterion of the index is market capitalisation. Thus, the highest 30 cryptocurrencies with the very best market capitalisation (excluded BTC, ETH and stablecoins) is included within the index if they’ve been actively traded available in the market for a minimum of three months and meet sure liquidity necessities (a minimum of $10 million market capital and a median day by day worth traded, MDVT, over three months of a minimum of $100,000 per day).
As of at this time, solely Bitcoin, Ethereum, Litecoin, Bitcoin Money, Polkadot, Solana Cardano, Avalanche, Polygon and Chainlink are permitted for buying and selling by the SFC for retail merchants. Whether or not the brand new index by the HKVAC will have an effect on this checklist appears greater than questionable at this level. Nonetheless, it will undoubtedly be main information for cash resembling SHIB, XRP, ADA or Dogecoin.
At press time, the overall crypto market capitalisation stood at $1.149 trillion, taking a breather after final week’s rally.
Featured picture from iStock, chart from TradingView.com