The Hong Kong Virtual Assets Consortium (HKVAC) has recently been unveiled, with Huobi stepping in as its first member. With retail cryptocurrency trading set to commence within Hong Kong under new regulations starting June 1st, this consortium’s launch comes at a pivotal moment for the industry. Huobi has already initiated its Huobi Hong Kong exchange in anticipation of the new marketplace.
The HKVAC’s primary objectives are to strengthen the sector’s security risk management capabilities and assist both the Central Government and Hong Kong’s local authorities in developing a premier hub for virtual assets and digital finance. Huobi, through its active involvement in the HKVAC, aims to establish a venture capital database that caters effectively to market needs.
Although the HKVAC website only features illustrative data at this time, it is designed to provide AAA through D ratings for digital asset exchanges based on nine evaluation criteria. The HKVAC also aims to produce two indexes: the Cryptocurrency Large Market Cap Index, which will be calculated based on the seven-day median of the top 30 capitalized cryptocurrencies with quarterly rebalancing, and the Cryptocurrency Risk Rating Based Index.
Several partners are said to be collaborating with the HKVAC, including FrancXav Asia Ratings, G-Rocket Global Accelerator, Hong Kong Data Infinity Technology, HKVAEX, Ipollo, KuCoin, LK Venture, Nano Labs, Purise, and Wealthking Investment Limited. Concurrently, the new regulatory environment in Hong Kong has led to a surge in trading license applications. In fact, just this week, two other industry groups – the Hong Kong Licensed Virtual Assets Association (HKLVAA) and Web3 Harbour – were also launched.
As the HKVAC develops, its contributions to the cryptocurrency market in Hong Kong are expected to be significant. By providing reliable ratings and indexes, it will facilitate safer and more informed investments for the ever-growing crypto community. However, concerns may arise as well, including regulatory challenges, the need to keep up with the ever-evolving market, and potential conflicts of interest among consortium members.
In conclusion, the HKVAC’s establishment signals continued growth and maturity within Hong Kong’s digital asset ecosystem. While its impact and contributions are yet to be fully assessed, the consortium has the potential to play a vital role in promoting transparency, trust, and security in the sector. On the other hand, the HKVAC will need careful and consistent monitoring to address and mitigate any potential drawbacks, ensuring that this promising initiative benefits the industry in the long run.
Source: Cointelegraph
