Hong Kong Exchanges and Clearing (HKEX) has announced the launch of its new virtual asset index series, set to go live on November 15. This move aims to provide investors with accurate, real-time data on digital assets, particularly in the Asia-Pacific region.

The index will offer crucial benchmarks for the pricing of Bitcoin and Ether within the Asian time zone, ensuring investors have access to reliable information to guide their decisions.

Key Features of the New Virtual Asset Index Series

The HKEX Virtual Asset Index Series is designed to gather a volume-weighted average price for Bitcoin (BTC) and Ether (ETH), using data from multiple top-tier exchanges. By doing so, it creates a single reference price for these key cryptocurrencies. The index is also compliant with the European Union Benchmarks Regulation (BMR), making it the first of its kind in Hong Kong.

Bonnie Y Chan, CEO of HKEX, expressed her excitement about the launch, saying, “We are delighted to introduce the HKEX Virtual Asset Index Series to meet the region’s growing demand for this fast-emerging asset class. This will enable investors to make informed decisions and support the development of the virtual asset ecosystem.”

SFC’s Push for More Digital Asset Licenses

In tandem with the launch of the virtual asset index, the Hong Kong Securities and Futures Commission (SFC) is working on finalizing full licenses for several crypto exchanges. These exchanges had previously operated with provisional permits.

The SFC has conducted inspections over the past five months and found some practices unsatisfactory. However, most firms have taken corrective actions, and by early 2025, the regulator plans to form a consultative panel with licensed exchanges to improve cooperation and compliance.

The expanded regulatory framework will also cover over-the-counter (OTC) trading desks and custodians, enhancing the overall oversight of Hong Kong’s digital asset markets.

AI Adoption in Hong Kong’s Financial Sector

In addition to developments in the virtual asset index space, Hong Kong is making strides toward integrating artificial intelligence (AI) into its financial sector. On October 28, the Financial Services and Treasury Bureau (FSTB) introduced new policies aimed at the responsible use of AI in finance.

According to the FSTB, AI could be used for risk management, customer service, and creating innovative financial products. The bureau’s policy statement also noted that the release of generative AI products in 2022 has opened new opportunities for the industry.

To ensure smooth AI adoption, the FSTB proposed a “dual-track approach,” which balances innovation with regulatory oversight, ensuring that potential risks are addressed while encouraging the development of AI in the financial sector.

Conclusion

With the upcoming launch of the HKEX digital asset index, Hong Kong is solidifying its position as a key player in the rapidly growing digital asset market in Asia. Alongside increased regulation and a push for AI integration, these initiatives reflect the city’s commitment to embracing technological advancements while maintaining robust regulatory frameworks.

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