Huobi has become the first member of the Hong Kong Virtual Assets Consortium (HKVAC), according to advertisement on May 31 the Seychelles-based cryptocurrency exchange. The new organization promises to offer a ratings and indices service when fully operational.
The new organization debuts at a crucial time, as cryptocurrency retail trading begins in Hong Kong under new regulations on June 1. Huobi has already launched its Huobi Hong Kong exchange to participate in the new market. According to Huobi
“[HKVAC] was established primarily to enhance the industry’s capabilities in security risk management and to assist Hong Kong Central Government and local authorities in building a world-leading center for virtual assets and digital finance.”
Huobi itself “intends to develop a venture capital database that meets the needs of the market” by participating in the HKVAC.
At the time of writing, the HKVAC website only included “illustrative” data. Even so, it has been created to provide digital asset exchange ratings from AAA to D based on continuous monitoring of nine reliability criteria.
The HKVAC will also produce two indices. The Cryptocurrency Large Market Cap Index will be based on the 30 largest cryptocurrencies based on a seven-day median, with other criteria and quarterly rebalancing. There will also be an index based on the risk rating of cryptocurrencies.
Local news outlet PANews said Other partners in the HKVAC include FrancXav Asia Ratings, G-Rocket Global Accelerator, Hong Kong Data Infinity Technology, HKVAEX, Ipollo, KuCoin, LK Venture, Nano Labs, Purise and Wealthking Investment Limited.
Hong Kong’s new regulatory regime has triggered a deluge of applications for business licences. Two other industry groups – the Hong Kong Licensed Virtual Assets Association and Web3 Harbour – have also launched this week.
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