The Hong Kong Stock Exchange (HKEX) has announced the launch of a virtual asset index series focused on regional pricing for Bitcoin and Ethereum.
A Unified Reference for Bitcoin and Ethereum
The HKEX Virtual Asset Index Series is set to provide a volume-weighted, real-time pricing benchmark for Bitcoin and Ethereum. The indices will be derived from aggregated data from leading global crypto exchanges. This aims to address existing price discrepancies and offer traders in Asia a stable reference point.
Tax Breaks and Licensing for Crypto Investments
In conjunction with the index launch, Hong Kong authorities are introducing supportive measures for digital asset investments. A proposed tax break legislation, expected by the end of 2024, might reduce taxes for citizens holding crypto assets. Secretary for Financial Services and the Treasury, Christopher Hui, highlighted that this move aims to attract investments to Hong Kong.
Stablecoin Regulation and Future Developments
The Hong Kong Monetary Authority (HKMA) plans to introduce stablecoin legislation by year-end. This follows the HKMA's stablecoin regulatory sandbox launched in March 2024, which promotes innovation while monitoring potential stablecoin usage risks. Such regulation is part of Hong Kong's proactive approach to creating a regulated environment for digital assets.
HKEX's initiative is aimed at strengthening the region's role as a hub for digital finance, supporting the global popularity of digital assets through transparent and reliable investment tools.
