My Crypto Past – Latest Crypto & Blockchain News
Image default
Bitcoin Crypto Index

Hong Kong to Gear Up Crypto Index, Tax Concessions & Stablecoin Regulations

  • The Hong Kong Stock Exchange (HKEX) will introduce Asia’s first crypto-based Index on November 15.
  • It will provide a trustworthy benchmark for Bitcoin ($BTC) and Ethereum ($ETH) prices in Asia’s trading hours. 
  • Hong Kong is also strengthening its Web3 stance by exploring crypto tax concessions and stablecoin regulations. 

Marking an innovative breakthrough, the HKEX announced today that it’ll debut Asia’s first crypto-centric Index on November 15. 

The Index will initially provide investors with clear, trustworthy benchmarks for $BTC and $ETH values during Asian trading times and abide by the EU Benchmarks Regulation (BMR).

Hong Kong is dipping its toes into various blockchain-based ventures to position itself as a fintech leader. 

HKEX Strives to Bridge the Gap in Crypto Prices

HKEX’s Virtual Asset Index Series will encompass both the Reference Index and Reference Rate for $BTC and $ETH.

The former calculates a daily volume-weighted spot price from major digital asset platforms in real time (specified in US dollars). Meanwhile, the latter is used for settling financial instruments, calculated every day at 16:00 HKT.

Its ultimate aim is to establish a single reference price for digital assets, countering price fluctuations across international crypto exchanges

By offering transparent and reliable real-time benchmarks, we seek to enable investors to make informed investment decisions, which will in turn support the development of the virtual asset ecosystem and reinforce Hong Kong’s role as an international financial center.HKEX Chief Executive Officer, Bonnie Y Chan

CCData (a UK-based digital asset data and index provider) will oversee the Index to ensure it provides accurate, reliable data

Crypto Tax Breaks for Hong Kong Investors?

According to Christopher Hui (Hong Kong’s Secretary for Financial Services and the Treasury) at Hong Kong Fintech Week, the region is also exploring tax concessions for digital assets.

Additionally, Hui highlighted the issuance of the ‘stablecoin issue sandbox’ in March and Hong Kong’s goal to finalize and introduce stablecoin regulations by the end of 2024. 

He also mentioned an ongoing review of legislation surrounding over-the-counter trading activities and custodial services, further emphasizing the region’s commitment to developing a sustainable, trustworthy virtual asset ecosystem. 

Hong Kong’s a Rising Star in Asia’s Crypto Sphere

Eastern Asia is the sixth-largest crypto economy in the world, having received $400B in on-chain value between July 2023 and June 2024. 

Hong Kong’s position in the Asian crypto market is promising. It ranks 30th in crypto adoption globally (with an 85.6% YoY growth) and is the first in Asia to launch $BTC and $ETH ETFs

By offering a more advantageous environment for fintech startups and crypto investors, Hong Kong’s desire to climb the Web3 ladder is evident. 

Albeit proceeding judiciously, it’s up against other Asian economies. Thailand, for example, is exploring tokenization and stablecoins to improve its economy. 

Russia also geared up crypto payment trials last month in the hope of bypassing international sanctions and improving its financial health. 

However, India’s consideration of a crypto ban (despite currently leading global crypto adoption) certainly works in HK’s favor.

References

  • HKEX to launch HKEX Virtual Asset Index Series (FX News Group) 
  • Hong Kong FinTech Week 2024 | Opening Remarks and Keynote Address (YouTube) 
  • Asia’s First Spot Bitcoin and Ether ETFs Debut in Hong Kong (CNBC) 

Read More

Related posts

Bitcoin Is The Opportunity For A New Economy In Central America

DailyCrypto.news

Bitcoin Is A Defensive Weapon Against War And Tyranny

DailyCrypto.news

Polygon and Immutable partner to help onboard more gamers and developers into web3

DailyCrypto.news

Leave a Comment

* By using this form you agree with the storage and handling of your data by this website.