While HKVAEX aims to obtain a virtual asset trading license from the Securities and Futures Commission, Binance has remained silent on its Hong Kong license application, despite acknowledging the region’s growing prominence in the global cryptocurrency market.
Binance, the world’s largest cryptocurrency exchange, has reportedly opened a new digital asset trading platform in Hong Kong to offer its products to customers in the region.
Binance created a company called HKVAE last year to apply for a virtual asset service provider (VASP) license in Hong Kong, the South China Morning Post reported, citing three people familiar with the matter.
HKVAEX will seek cryptocurrency license in Hong Kong
HKVAEX was established in December 2022 as an independent entity under BX Services Limited. The exchange started operations later this February.
However, the company denied any ties to Binance in an emailed statement, noting that a team of technology experts and financial professionals operates the company alone.
In addition, the company revealed that it is currently preparing to apply for a virtual asset trading license from the Hong Kong Securities and Futures Commission (SFC). someone said:
"HKVAEX is an independent virtual asset trading platform headquartered in Hong Kong. It is operated by a technical team and experienced professionals from the financial services industry and is currently preparing to apply for a [SFC virtual asset trading platform] license."
Binance representatives also refuted the claim, noting that the company is not part of the Binance Group of Companies or its affiliates.
Binance and HKVAEX jointly attended the conference
Despite claiming to be independent, the relationship between Binance and HKVAEX appears to be more intertwined than suggested. The exchange shares resources and uses Binance servers to obtain content, people familiar with the matter said.
In addition, the two companies jointly attended a number of events in Hong Kong this year. In March, Binance Academy, BNB Chain, and HKVAEX partnered with the University of Hong Kong Blockchain Lab to host a cryptocurrency workshop.
Later in April, HKVAEX mentioned Binance as a partner in a promotion to attract more people to sign up on its platform. Later, in July, the company’s CEO Stanley Fung and Binance CISO Nathan Swain jointly spoke at the Web3 Connect event organized by Cyberport.
In the same month, HKVAEX participated in a dinner organized by Richard Teng, Binance’s regional market director.
Hong Kong opens cryptocurrency trading to retail investors
While HKVAEX aims to obtain a virtual asset trading license from the Securities and Futures Commission, Binance has remained silent on its Hong Kong license application, despite acknowledging the region’s growing prominence in the global cryptocurrency market.
Recall that Hong Kong’s securities regulator announced in May that licensed cryptocurrency exchanges would be allowed to provide retail services to customers in the region starting July 1.
At the time, Coin Whisperer reported that some 152 cryptocurrency companies around the world had submitted applications to obtain authorization from authorities so that they could legally enter the country.
While Binance has not yet joined the race for a virtual asset license in Hong Kong, the company has applied to register in Taiwan to comply with anti-money laundering compliance. #币安香港 #交易所牌照
