Monday, November 18, 2024

Huobi has become the first member of the Hong Kong Virtual Assets Consortium (HKVAC), the Seychelles-based cryptocurrency exchange announced on May 31. The new organization promises to provide a ratings service and indexes when it is fully launched.

The new organization is debuting at a crucial moment, as retail cryptocurrency trading begins in Hong Kong under new regulations on June 1. Huobi has already launched its Huobi Hong Kong exchange to participate in the new marketplace. According to Huobi:

“[HKVAC] was established primarily to enhance the industry’s capabilities in security risk management and to assist the Central Government and Hong Kong’s local authorities in building a world-leading hub for virtual asset and digital finance.”

Huobi itself “aims to develop a venture capital database that caters to the needs of the market” by participating in the HKVAC.

Related: Huobi Global ordered to halt operations in Malaysia

The HKVAC website included only “illustrative” data at the time of writing. Still, it is set up to provide ratings of digital asset exchanges of AAA through D based on continuous surveillance of nine criteria of trustworthiness.

The HKVAC will also produce two indexes. The Cryptocurrency Large Market Cap Index will be based on the 30 highest capitalized cryptocurrencies according to a seven-day median, with other criteria and quarterly rebalancing. There will also be a Cryptocurrency Risk Rating Based Index.

Local news outlet PANews said other partners in the HKVAC include FrancXav Asia Ratings, G-Rocket Global Accelerator, Hong Kong Data Infinity Technology, HKVAEX, Ipollo, KuCoin, LK Venture, Nano Labs, Purise and Wealthking Investment Limited.

The new regulatory regime in Hong Kong has set off a rush of applications for trading licenses. Two other industry groups — Hong Kong Licensed Virtual Assets Association and Web3 Harbour — were also launched this week.

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