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- Binance has reportedly established a new cryptocurrency trading platform named HKVAEX in Hong Kong.
- HKVAEX has announced its intention to apply for a compliance license in Hong Kong.
- While some insiders claim that HKVAEX is set up by Binance, Binance representatives deny any connection.
Crypto exchange Binance has established a new crypto trading platform in Hong Kong, HKVAEX. The exchange has announced its intention to apply for a compliance license in Hong Kong, according to the South China Morning Post (SCMP).
Colin Wu, a Chinese reporter, shared the news and added that in July, HKVAEX CEO Stanley Fung said the exchange was preparing to submit a compliance license application.
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
HKVAEX was established in December 2022 as a separate entity from Binance. The exchange is under a company named BX Services Limited. Three close company insiders who wished to remain anonymous revealed that HKVAEX was set up by Binance and that the two organizations share resources.
However, a Binance representative declared the opposite and shared, “HKVAEX is not in the Binance Group of companies.” Moreover, when asked about its relationship with Binance, HKVAEX said the exchange “is an independent virtual asset exchange platform based in Hong Kong.”
According to HKVAEX, a “team of technology and seasoned professionals from the financial services sector” runs the exchange.
Reportedly, the two companies’ main websites share a lot of similarities, which include shared code and “nearly identical” terms of use templates. Furthermore, SCMP speculated that the two companies could be sharing legal resources.
SCMP added that by having an independent exchange in Hong Kong, Binane will be able to take advantage of the market. As of now, Hong Kong has introduced new rules for crypto exchanges, allowing licensed crypto firms to cater to retail customers. However, Binance is facing increasing legal security and many challenges.
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