Justin Sun and Binance’s CZ praise Hong Kong’s crypto-forward policies, here’s what it means

Hong Kong has been making strides in its crypto-forward policies to drive the adoption of Bitcoin, Ethereum and altcoins in China’s Special Administrative Region (SAR).

The Hong Kong Virtual Asset Consortium (HKVAC), a non-governmental body supported by legislators, released a list of cryptocurrencies included in a virtual asset index. Several assets in the list were the same ones the US Securities and Exchange Commission (SEC) labeled as securities.

Two crypto influencers and executives Justin Sun and Changpeng Zhao acknowledged Hong Kong authorities’ efforts and shared the update with their followers on Twitter.

Also read: US SEC likely to approve spot Bitcoin ETFs, catalyzing marketwide recovery in crypto

HKVAC lists US SEC’s securities in its virtual asset index

Hong Kong has been driving crypto adoption in China’s SAR through its crypto-forward policies and moves. The Hong Kong Monetary Authority (HKMA) is known to have instructed banking and financial institutions to meet the needs of licensed crypto exchanges.

Taking a step further, the rating agency HKVAC announced a virtual asset index. The index included altcoins and stablecoins, alongside cryptocurrencies. Some of these assets were tagged as securities by the US SEC in its lawsuit against Binance and Coinbase.

The list of assets included in HKVAC’s index is as follows:

BTC, ETH, WBTC, BTCB, stETH, BCH, LTC, BNB, MATIC, ADA, ATOM, FIL, NEAR, ALGO, ICP, XRP, DOGE, DOT, WTRX, SHIB, TRX, LINK, LEO, XMR, XLM, OKB, LDO, HBAR, VET, QNT, FTM, and EOS

Justin sun and changpeng Zhao acknowledge Hong Kong’s pro-crypto moves 

Tron creator and investor in the exchanges Poloniex and Huobi, Justin Sun, shared his comments on the news of HKVAC’s index. Sun said that Hong Kong’s implementation of rating rules and the release of the index demonstrates China SAR’s commitment to providing a secure and transparent environment for crypto adoption.

Binance CEO Changpeng Zhao (CZ) shared the update with his 8.5 million followers on Twitter.

Significant of the virtual asset index

The HKVAC is a non-governmental agency, however, it has the support of legislators. There is some weightage for the assets being included in the index. According to Chinese journalist Colin Wu, the weightage is likely less significant since the Hong Kong government does not have a role to play in the inclusion or exclusion of cryptocurrencies from the index. 

Irrespective, the China crypto narrative and the inclusion of assets like Polygon (MATIC), Cardano (ADA), and XRP, among others, are likely to drive a recovery in these cryptocurrencies in the short term. As the adoption of the altcoins included in the index rises, higher capital inflow and a bullish trend reversal are likely.