Binance has been revealed as the driving force behind Hong Kong’s newly established cryptocurrency trading platform, HKVAEX. Sources familiar with the matter revealed that Binance coordinated the establishment of HKVAEX and its intention to apply for a license in the city.
Founded in December 2022 and launched in February, HKVAEX operates independently in Hong Kong under BX Services Limited. However, the two entities share resources, with the exchange’s website using Binance servers to deliver content.
Binance representatives confirmed that HKVAEX is not part of the Binance Group. However, the relationship between the two has raised questions. HKVAEX plans to apply for a virtual asset trading platform license to the Hong Kong Securities and Futures Commission, capitalizing on the city’s efforts to attract players in the cryptocurrency industry with legal stability.
Having an independent exchange in Hong Kong could enable Binance to capitalize on the city’s growing cryptocurrency market. In contrast, Binance faces increasing legal scrutiny and liquidity challenges abroad.
HKVAEX has not backed down from this connection, and has discussed it publicly in interviews and events. However, the two companies have different models of terms of use, suggesting separate legal resources.
SCMP: Binance created HKVAEX to apply for a cryptocurrency compliance license in Hong Kong. HKVAEX was founded in December 2022, and its CEO Stanley Fung said in July that it was preparing to file an application. HKVAEX shares resources and code with Binance.
— Wu Blockchain (@WuBlockchain) October 25, 2023
Binance is silent on Hong Kong’s licensing regime
Binance, which was founded in Shanghai in 2017, has remained largely silent about its intentions regarding Hong Kong’s new licensing regime, which has attracted other exchanges with ties to China. Binance CEO Zhao Changping has acknowledged the potential of China’s cryptocurrency market but has not publicly expressed interest in obtaining a virtual assets license in Hong Kong.
Amid legal challenges, Binance has seen executive departures, layoffs, and exit from several international markets. The company is facing a lawsuit by the US Securities and Exchange Commission. It claims trading volumes were artificially inflated and customer funds were diverted. In response to these challenges, Binance continues to adjust its operations globally.
As HKVAEX seeks a license in Hong Kong, the cryptocurrency industry will be watching to see how Binance’s connection to the platform will be unveiled.
Binance has been revealed as the driving force behind Hong Kong’s newly established cryptocurrency trading platform, HKVAEX. Sources familiar with the matter revealed that Binance coordinated the establishment of HKVAEX and its intention to apply for a license in the city.
Founded in December 2022 and launched in February, HKVAEX operates independently in Hong Kong under BX Services Limited. However, the two entities share resources, with the exchange’s website using Binance servers to deliver content.
Binance representatives confirmed that HKVAEX is not part of the Binance Group. However, the relationship between the two has raised questions. HKVAEX plans to apply for a virtual asset trading platform license to the Hong Kong Securities and Futures Commission, capitalizing on the city’s efforts to attract players in the cryptocurrency industry with legal stability.
Having an independent exchange in Hong Kong could enable Binance to capitalize on the city’s growing cryptocurrency market. In contrast, Binance faces increasing legal scrutiny and liquidity challenges abroad.
HKVAEX has not backed down from this connection, and has discussed it publicly in interviews and events. However, the two companies have different models of terms of use, which suggests separate legal resources.
SCMP: Binance created HKVAEX to apply for a cryptocurrency compliance license in Hong Kong. HKVAEX was founded in December 2022, and its CEO Stanley Fung said in July that it was preparing to file an application. HKVAEX shares resources and code with Binance.
— Wu Blockchain (@WuBlockchain) October 25, 2023
Binance is silent on Hong Kong’s licensing regime
Binance, which was founded in Shanghai in 2017, has remained largely silent about its intentions regarding Hong Kong’s new licensing regime, which has attracted other exchanges with ties to China. Binance CEO Zhao Changping has acknowledged the potential of China’s cryptocurrency market but has not publicly expressed interest in obtaining a virtual assets license in Hong Kong.
Amid legal challenges, Binance has seen executive departures, layoffs, and exit from several international markets. The company is facing a lawsuit by the US Securities and Exchange Commission. It claims trading volumes were artificially inflated and customer funds were diverted. In response to these challenges, Binance continues to adjust its operations globally.
As HKVAEX seeks a license in Hong Kong, the cryptocurrency industry will be watching to see how Binance’s connection to the platform will be unveiled.