While HKVAEX aims to secure a license under the SFC for virtual asset trading, Binance has remained reticent about its own licensing pursuits in Hong Kong despite acknowledging the region’s growing prominence within the global crypto market.
Binance, the world’s largest cryptocurrency exchange, has allegedly opened up a new digital asset trading platform in Hong Kong to bring its product offerings to customers in the region.
According to a South China Morning Post report citing three people familiar with the matter, Binance created a company called HKVAE last year to pursue a virtual assets service provider (VASP) license in Hong Kong.
HKVAEX to Pursue Crypto Licencing in Hong Kong
HKVAEX, established in December 20222, was launched under BX Services Limited as a separate entity. The exchange became operational later this year in February.
The company, however, denied any connection with Binance in an emailed statement, noting that a team of tech experts and financial professionals solely operates it.
Additionally, the firm revealed that it is currently preparing to apply for a virtual asset trading license from Hong Kong’s Securities and Futures Commission (SFC). It was said:
“HKVAEX is an independent virtual asset exchange platform based in Hong Kong. It’s operated by a team of technology and seasoned professionals from the financial services sector, currently preparing to apply for the [Securities and Futures Commission’s virtual asset trading platform] license.”
A Binance representative also refuted the claims, noting that the company does not belong to the Binance Group of companies or its affiliates.
Binance and HKVAEX Attended Conferences Together
Despite claims of independence, the relationship between Binance and HKVAEX seems more intertwined than suggested. Sources familiar with the matter said the exchange shares resources and uses Binance servers for fetching content.
Additionally, both companies have jointly appeared in several events in Hong Kong this year. In March, Binance Academy, BNB Chain, and HKVAEX collaborated with the University of Hong Kong’s Blockchain Lab in a cryptocurrency workshop.
Later in April, HKVAEX mentioned Binance as a partner in a promotion to get more people to sign up on their platform. Then, in July, the company’s CEO, Stanley Fung, and Binance’s chief information security officer, Nathan Swain, spoke together at the Web3 Connect event, which was organized by Cyberport.
That same month, HKVAEX joined in a dinner gathering organized by Binance’s head of regional markets, Richard Teng.
Hong Kong Opens Up Crypto Trading For Retail Investors
While HKVAEX aims to secure a license under the SFC for virtual asset trading, Binance has remained reticent about its own licensing pursuits in Hong Kong despite acknowledging the region’s growing prominence within the global crypto market.
Recall that Hong Kong’s Securities watchdog announced in May that it would allow licensed crypto exchanges to offer retail services to customers in the region starting July 1.
At the time, Coinspeaker reported that approximately 152 crypto companies from across the globe had submitted applications to secure authorization from the authorities to enable them to legally enter the country.
While Binance is yet to join the race for a virtual asset license in Hong Kong, the company has applied to get registered in Taiwan for anti-money laundering compliance.
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