HKEX Launches Digital Asset Index Series in Asia-Pacific

HKEX's New Digital Asset Index Launch

Hong Kong Exchanges and Clearing (HKEX) has announced the launch of its Virtual Asset Index Series, aimed at providing accurate real-time data for digital assets in the Asia-Pacific region. Set to go live on November 15, this initiative offers investors benchmarks for Bitcoin (BTC) and Ether (ETH) pricing within the Asian time zone. This move aligns with the Hong Kong Securities and Futures Commission's (SFC) plans to expand digital asset exchange licenses by year-end.

Index Series Features

The HKEX Virtual Asset Index Series aims to deliver a single reference price for BTC and ETH. This is achieved through a volume-weighted average derived from multiple top-rated exchanges. Uniquely, the index is compliant with the European Union Benchmarks Regulation (BMR), marking it as a pioneering effort in Hong Kong. The CEO of HKEX emphasized its role in supporting informed investment decisions and fostering the development of the virtual asset ecosystem.

Regulatory Advancements and Licensing

Coinciding with the index launch, the SFC is in the process of finalizing full licenses for several crypto exchanges, transitioning from provisional permits. Following a thorough inspection period, some firms were found lacking, but corrective measures have been taken by most. By early 2025, a consultative panel with licensed exchanges is planned to enhance cooperation and compliance, extending the regulatory framework to include over-the-counter trading desks and custodians.

AI Adoption in Hong Kong's Financial Sector

In a related development, Hong Kong’s Financial Services and Treasury Bureau (FSTB) has introduced new policies for the responsible use of artificial intelligence in finance. These policies aim to manage AI applications in various financial aspects, from risk management to customer services. The FSTB's dual-track approach seeks to address potential challenges while encouraging AI innovation in the financial industry.