Binance, the world’s largest cryptocurrency exchange, is reported to have set up HKVAEX, a cryptocurrency derivatives trading platform in its efforts to secure a virtual asset trading license in Hong Kong, as per sources with knowledge of the situation. HKVAEX, established in December of the previous year, appears to share resources and utilize Binance servers for content retrieval. Notably, both companies have jointly participated in multiple events in Hong Kong.
According to reports on October 25, insiders with close ties to HKVAEX have stated that the company was founded by Binance in December 2022 with the primary aim of obtaining a cryptocurrency license in Hong Kong.
While HKVAEX operates as a separate entity under BX Services Limited, it appears to be closely linked to Binance through the sharing of resources and content delivery servers. The two companies’ main websites exhibit notable similarities, including shared code and the utilization of Binance’s content delivery domain, bnbstatic.com. Additionally, their terms of use appear to be identical, suggesting that the two entities may also be sharing legal resources.
Furthermore, Binance and HKVAEX have reportedly collaborated at various events in Hong Kong throughout the year. For example, in March, Binance Academy, BNB Chain, and HKVAEX joined forces with the University of Hong Kong’s Blockchain Lab for a cryptocurrency workshop. In April, HKVAEX described Binance as a partner in a promotional offer for opening an account.
HKVAEX has responded to inquiries by denying any association with Binance, asserting that it is an independent virtual asset exchange in Hong Kong. They stated, “It’s operated by a team of technology and seasoned professionals from the financial services sector, currently preparing to apply for the [Securities and Futures Commission’s virtual asset trading platform] license.”
A representative from Binance also refuted any affiliation with HKVAEX, clarifying that “Binance group,” in its terms of service, focuses on online cryptocurrency asset exchange, which is distinct from “Binance Affiliates.”
If confirmed, Binance’s establishment of an independent exchange, HKVAEX, would enable the platform to establish a significant presence in Hong Kong, particularly at a time when it is facing heightened regulatory scrutiny and liquidity challenges.
