HKEX Launches Digital Asset Index as Hong Kong Expands Crypto Licensing

HKEX Launches Digital Asset Index as Hong Kong Expands Crypto Licensing

Hong Kong Exchanges and Clearing (HKEX), a publicly traded global exchange group, has announced the launch of a new digital asset index series aimed at providing accurate real-time data on digital assets in the Asia-Pacific region. The HKEX Virtual Asset Index Series will go live on November 15, offering benchmarks for Bitcoin (BTC) and Ether (ETH) pricing during Asian trading hours.

The launch of this new index aligns with the Hong Kong Securities and Futures Commission’s (SFC) plans to issue more digital asset exchange licenses by the end of the year. According to Bloomberg, Eric Yip, executive director at the SFC, highlighted that firms have been receptive to feedback and the SFC’s push for increased licensing.

The HKEX Virtual Asset Index Series is designed to provide a single reference price for BTC and ETH, using a volume-weighted average derived from data across multiple top-rated exchanges. According to an official press release, the index complies with the European Union Benchmarks Regulation (BMR), making it the first of its kind in Hong Kong.

Bonnie Y Chan, CEO of HKEX, stated that the new index series aims to enhance market transparency and enable informed investment decisions, supporting the development of the virtual asset ecosystem. “We are delighted to introduce the HKEX Virtual Asset Index Series to meet the region’s growing demand for this fast-emerging asset class,” Chan said.

Alongside the new index, the SFC is finalizing full licenses for several crypto exchanges that had previously been granted provisional permits. Following a five-month inspection period, the regulator identified unsatisfactory practices among some firms but acknowledged that most had taken corrective actions. By early 2025, the SFC plans to form a consultative panel with licensed exchanges to improve cooperation and compliance.

The expansion of Hong Kong’s regulatory framework also covers over-the-counter (OTC) trading desks and custodians, reinforcing oversight of digital asset markets. Additionally, Hong Kong’s Financial Services and Treasury Bureau (FSTB) has issued new policies to promote the safe adoption of artificial intelligence in the financial sector, highlighting the city’s broader push for innovation in both AI and crypto.

The HKEX Virtual Asset Index Series, combined with the SFC’s efforts to expand licensing, reflects Hong Kong’s ambition to position itself as a leading hub for digital assets and related technologies.

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