A digital asset exchange platform with ties to crypto titan Binance has reportedly announced its intention to apply for a license in one of Asia’s leading finance hubs.
According to the South China Morning Post, HKVAEX was created as a separate entity under the company BX Services Limited, but Binance is behind it.
HKVAEX was established in December and launched its trading platform in February.
Citing sources familiar with the matter, the report says the world’s largest crypto exchange created HKVAEX to pursue a crypto license in Hong Kong.
The report says both companies and their executives jointly participated in public events in Hong Kong. Their websites, Binance.com and HKVAEX.hk, also have striking similarities with shared code and use of Binance’s content delivery domain bnbstatic.com. In April, HKVAEX described Binance as a partner in a promotional offer for opening an account.
Changpeng Zhao’s exchange does not consider the firm as part of the Binance Group of companies. HKVAEX also says it 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.”
The report of HKVAEX’s plans to secure a license in Hong Kong comes after the city rolled out a new licensing scheme aiming to attract players in the crypto industry.
Says Hong Kong’s Securities and Futures Commission (SFC) CEO Julia Leung of the new rules,
“Hong Kong’s comprehensive virtual assets regulatory framework follows the principle of ‘same business, same risks, same rules’ and aims to provide robust investor protection and manage key risks. This will enable the industry to develop sustainably and support innovation.”