Binance reportedly behind new Hong Kong cryptocurrency exchange

• Binance has encountered heightened legal scrutiny in various international jurisdictions.
• In an effort to attract industry players, Hong Kong introduced a new licensing framework this year.

Binance [BNB] has been identified as the driving force behind the establishment of a new cryptocurrency trading platform in Hong Kong, the South China Morning post reported. This platform, known as HKVAEX, has unveiled its plans to seek a cryptocurrency license in the city.

Although representatives of Binance have asserted that HKVAEX is not part of the Binance Group, insiders familiar with the situation told SCMP that Binance played a pivotal role in setting up HKVAEX and its mission to obtain a crypto license in Hong Kong.

Established in December 2022, HKVAEX initiated its trading platform operations in February. While HKVAEX, registered in Hong Kong under the name BX Services Limited, is considered a separate entity, there are indications that it shares resources and infrastructure with Binance.

Notably, HKVAEX’s website relies on Binance servers for fetching content, suggesting a close relationship between the two entities.

HKVAEX eyes crypto license in Binance-linked endeavor

HKVAEX, officially described as an “independent virtual asset exchange platform based in Hong Kong,” has expressed its intent to pursue a license from the Securities and Futures Commission for virtual asset trading platforms.

Regarding its relationship with Binance, an email statement from HKVAEX conveyed that a team of technology and finance professionals is operating it and preparing to seek the required license, positioning itself as a separate entity.

While Binance representatives contend that HKVAEX is not part of the Binance Group, the company defines its “Binance group” in its terms of service as an “ecosystem centered around an online exchange for Digital Assets trading,” distinguishing it from “Binance Affiliates.”

At the same time, Binance has encountered heightened legal scrutiny and liquidity challenges in various international jurisdictions.

Hong Kong’s continual push for crypto

In an effort to attract industry players and enhance legal stability, Hong Kong introduced a new licensing framework this year.

Since the announcement of the licensing scheme, several exchanges with ties to China have expressed their intentions to pursue licenses in Hong Kong, indicating the region’s growing appeal to crypto businesses.

In contrast, Binance, originally founded in Shanghai in 2017, has remained relatively quiet on this matter.

CEO Stanley Fung revealed in a video interview with a Hong Kong crypto YouTuber known as Leo that HKVAEX is actively preparing to submit its application for Hong Kong’s virtual asset license.