The Hong Kong Stock Exchange announced the launch of a virtual asset index series to serve as a unified benchmark for Bitcoin and Ethereum in Asia.
Unified Benchmark Index for Digital Currencies
Scheduled for release on November 15, 2024, this series will provide a volume-weighted, real-time pricing benchmark for Bitcoin and Ethereum, derived from aggregated data from leading global crypto exchanges. Notably, the indices will be available in USD, offering a universally accepted valuation standard, unaffected by currency fluctuations and local economic influences.
Tax Breaks and Licensing
In parallel with this index launch, Hong Kong regulators are introducing supportive measures for digital asset investment. According to an October 28 Bloomberg report, a proposed tax break for digital asset investments might reduce taxes for citizens holding crypto assets. The Hong Kong Securities and Futures Commission 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.
Stablecoin Regulation and Future Developments
Hong Kong's de facto central bank plans to introduce stablecoin legislation by year-end, following the stablecoin regulatory sandbox launched in March 2024, encouraging innovation while monitoring potential risks. Stablecoin regulation is part of Hong Kong's proactive approach to creating a regulated environment for digital assets.
These initiatives reflect HKEX's ambition to become a hub for digital finance in the Asia-Pacific region.
