Hong Kong has taken a big step ahead in embracing crypto because it re-opened its doorways to the world of digital property at first of the month. In a bid to place itself as a number one international monetary hub for modern 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 trade consultants, market individuals, and different stakeholders. Along with these overarching measures, the Hong Kong SFC has outlined particular necessities for retail-tradable tokens, geared toward safeguarding retail traders. One of many measures is that the Hong Kong SFC requires retail-tradable tokens to be included in not less than 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 present. The Hong Kong ranking company at present 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 record 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 keeping with Wu, the establishment is backed by Hong Kong lawmakers Johnny Ng, Huobi, KuCoin and others.
Because of these controversies, the Hong Kong crypto group doesn’t consider that the reference worth could be very excessive, as Wu explains. Since HKVAC’s index is non-governmental, and its evaluation standards are quite simple, Wu believes it’ll haven’t any affect on retail market tradability.
The principle criterion of the index is market capitalisation. Thus, the highest 30 cryptocurrencies with the best market capitalisation (excluded BTC, ETH and stablecoins) is included within the index if they’ve been actively traded out there for not less than three months and meet sure liquidity necessities (not less than $10 million market capital and a median each day worth traded, MDVT, over three months of not less than $100,000 per day).
As of at present, solely Bitcoin, Ethereum, Litecoin, Bitcoin Money, Polkadot, Solana Cardano, Avalanche, Polygon and Chainlink are authorised 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 record appears greater than questionable at this level. Nevertheless, it might undoubtedly be main information for cash comparable to SHIB, XRP, ADA or Dogecoin.
At press time, the whole crypto market capitalisation stood at $1.149 trillion, taking a breather after final week’s rally.
Featured picture from iStock, chart from TradingView.com