Binance is Reportedly Behind New Hong Kong Crypto Exchange Seeking License
Crypto exchange giant Binance seems to have connections with a newly established cryptocurrency trading platform in Hong Kong that has announced its intention to apply for a license in the city, according to a South China Morning Post report.
The trading platform, known as HKVAEX, was created in December 2022 and launched its trading services in February.
SCMP reported that insiders close to the company, who spoke on the condition of anonymity due to the sensitive nature of the information, suggest that Binance is the driving force behind HKVAEX's efforts to secure a crypto license in Hong Kong.
HKVAEX operates as a separate entity under BX Services Limited in Hong Kong, although the companies are said to share resources.
The exchange's website also reveals its utilization of Binance servers for content retrieval.
In response to inquiries regarding its association with Binance, HKVAEX asserted its status as an independent virtual asset exchange platform based in Hong Kong.
It is operated by a team of technology and financial services professionals who are actively preparing to apply for the Securities and Futures Commission's virtual asset trading platform license.
Binance representative explicitly stated that "HKVAEX is not in the Binance Group of companies." Binance distinguishes its "Binance group" as an ecosystem centered around its online digital assets exchange, separate from "Binance Affiliates."
The move to establish an independent exchange in Hong Kong may enable Binance to leverage the opportunities presented by a market aspiring to play a greater role in the global cryptocurrency industry.
This strategy comes at a time when Binance faces mounting legal scrutiny and liquidity challenges in various international
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