Binance
has been revealed as the force behind the newly established cryptocurrency
trading platform in Hong Kong, HKVAEX. Sources familiar with the matter have
disclosed that Binance orchestrated the creation of HKVAEX and its intent to
apply for a license in the city.
HKVAEX,
established in December 2022 and launched in February, operates independently
in Hong Kong under the company BX Services Limited. However, the two entities
share resources, with the exchange’s website utilizing Binance servers for
content delivery.
Binance
representatives have emphasized that HKVAEX is not part of the Binance Group.
Nevertheless, the connection between the two has raised questions. HKVAEX plans
to apply for the Securities and Futures Commission’s virtual asset trading
platform license in Hong Kong, capitalizing on the city’s efforts to attract
crypto industry players with legal stability.
Having
an independent exchange in Hong Kong could enable Binance to tap into the
growing crypto market in the city. In contrast, Binance has been facing
increased legal scrutiny and liquidity challenges overseas.
HKVAEX
has not shied away from the connection, openly discussing it in interviews and
events. However, the two companies have distinct terms of use templates,
suggesting separate legal resources.
SCMP: Binance establishes HKVAEX to apply for Hong Kong cryptocurrency compliance license. HKVAEX was established in December 2022, and its CEO Stanley Fung said in July that it was preparing to submit an application. HKVAEX shares resources and code with Binance.…
— Wu Blockchain (@WuBlockchain) October 25, 2023
Binance’s Silence on Hong
Kong’s Licensing Scheme
Binance,
founded in Shanghai in 2017, has largely remained silent on its intentions
regarding Hong Kong’s new licensing scheme, which has attracted other exchanges
with ties to China.
Binance’s CEO, Zhao Changpeng, has acknowledged the potential of China’s crypto
market but has not publicly expressed interest in obtaining a virtual asset
license in Hong Kong.
Amidst
legal challenges, Binance has seen executive departures, laid off workers, and
exited several international markets. The company faces a lawsuit by the US Securities and Exchange
Commission. It alleges artificially inflated trading volumes and customer
fund diversion. In response to these challenges, Binance continues to
adjust its operations globally.
As
HKVAEX seeks a license in Hong Kong, the crypto
industry will be watching to see how Binance’s…
