Binance, a prominent cryptocurrency exchange, is suspected to be associated with a newly established crypto trading platform in Hong Kong, HKVAEX, which has publicly declared its intent to seek regulatory approval in the city, according to reports from the South China Morning Post.
HKVAEX came into existence in December 2022 and commenced its trading services in February. While HKVAEX operates as a distinct entity under BX Services Limited in Hong Kong, there are indications of shared resources between the two companies, and the exchange’s website even indicates its use of Binance servers for content retrieval.
Insiders close to the situation, who chose to remain anonymous due to the sensitive nature of the information, suggest that Binance is the driving force behind HKVAEX’s efforts to secure a cryptocurrency license in Hong Kong.
When queried about its connection with Binance, HKVAEX affirmed its independent status as a virtual asset exchange platform in Hong Kong. The platform is operated by a team of technology and financial services professionals actively preparing for an application for the Securities and Futures Commission’s virtual asset trading platform license.
However, Binance explicitly denied any affiliation with HKVAEX, emphasizing that HKVAEX is not part of the Binance Group of companies.
Establishing an autonomous exchange in Hong Kong could offer Binance new opportunities in a market aspiring to become a more significant player in the global cryptocurrency industry. This strategic move comes at a time when Binance faces legal scrutiny and liquidity challenges in various international markets.
The implementation of a new licensing scheme in Hong Kong this year aims to attract cryptocurrency industry participants by providing a stable regulatory framework. Several exchanges with ties to China have expressed their intentions to pursue a Hong Kong license following the scheme’s introduction. In contrast, Binance, which was founded in Shanghai in 2017, has been relatively reserved on this matter.