To the world’s largest cryptocurrency market
On May 31, the major overseas crypto asset (virtual currency) exchange “Huobi Global (hereafter Huobi)” announced that it will join an organization called “Hong Kong Virtual Assets Consortium (HKVAC)” in Hong Kong.
According to the announcement, Huobi is the first exchange to join HKVAC. Huobi explains that it will support Web3’s business environment in Hong Kong and work with other leaders to create the world’s safest and largest investment environment.
Great News!#Huobithe first virtual asset trading platform invited to #HKVACis fully committed to supporting #HongKong‘s Web3 business development.
Together with industry leaders, we aim to create the world’s largest & most secure virtual asset investment environment. pic.twitter.com/w2WvQgohnP
—Huobi (@HuobiGlobal) May 31, 2023
What is Web3
Also known as the “Next Generation Internet,” it refers to a decentralized network based on blockchain. Specifically, it includes NFTs (non-fungible tokens) and virtual currencies.
▶️Cryptocurrency Glossary
In Hong Kong, which aims to become a hub for cryptocurrencies, new exchange regulations will start this month. The new rule that allows individual investors to trade virtual currencies has also been reported in China, which prohibits trading and mining of virtual currencies, and is attracting a lot of attention.
connection: Chinese state TV reports Hong Kong cryptocurrency news, commented by Binance CZ
Although HKVAC is a newly created organization, it has an official website. HKVAC has the following five missions.
- Make Hong Kong the largest and safest cryptocurrency market in the world
- Provide credit ratings for exchanges and financial instruments
- Providing indices, benchmarks, research results and data to the market
- Providing services such as fraud prevention measures or products necessary for the public interest
- Provide consumers with data on investment risks and participate in investment education
According to local media PANews, KuCoin and FrancXav Asia Ratings are also planning to join HKVAC.
Service contents
Instead of allowing individual investors to trade virtual currencies, Hong Kong enforces investor protection rules. Exchanges have a licensing system and set standards for listed stocks. In this environment, HKVAC has a role to play in supporting Hong Kong regulation and investment. HKVAC is still in full-scale operation, as some indices are still preparing to be released.
connection: Hong Kong enforces new rules for virtual currency exchanges from June, stipulating issues that can be listed
Among the services it provides, an index called “Cryptocurrency Large Market Cap Index (HKVAC CLMCI)” is publicly available. This is an index of the performance of the top 30 stocks by market capitalization, taking into account their relative weight. Detailed rules such as “Omit Bitcoin (BTC) and Ethereum (ETH)” are also set in the index rules.
In addition, the company plans to provide an index on cryptocurrency risk called the “Cryptocurrency Risk Rating Based Index,” which will be released soon.
Exchanges will be rated based on nine criteria, including “security” and “regulatory compliance.” It will be evaluated on a 10-point scale from “D”, which stands for closed, to “AAA”, which is the highest standard.
connection: OKX app to offer 16 types of cryptocurrency trading for retail investors in Hong Kong