South China Morning Post: Binance suspected to be linked to Hong Kong's new crypto exchange HKVAEX in an attempt to obtain a license

According to sources familiar with the matter, Binance, the world's largest cryptocurrency exchange, may be a major supporter behind the newly established Hong Kong-based exchange platform HKVAEX. Despite both companies denying direct relations on multiple occasions, evidence from various sources suggests that there may be a closer collaboration between them.

Is Binance Attempting Compliance in Hong Kong Through HKVAEX?

According to South China Morning Post, a new exchange platform in Hong Kong, HKVAEX, may actually be backed and set up by Binance in an effort to obtain a cryptocurrency license in Hong Kong, as per three industry sources. However, these sources wish to remain anonymous as the information is considered confidential.

HKVAEX was established in Hong Kong as a separate entity from BX Services Limited. Yet, the exchange's website shows it is utilizing Binance's servers. When asked about its relationship with Binance, HKVAEX responded that they are an independent digital asset trading platform.

Nevertheless, HKVAEX and Binance have jointly participated in several events in Hong Kong this year. A notable example is the cryptocurrency seminar hosted by Binance Academy, BNB Chain, and HKVAEX in collaboration with the University of Hong Kong. Furthermore, there is a high degree of similarity in design and code between the HKVAEX website and the Binance website.

Industry experts speculate that Binance's moves in Hong Kong may be an attempt to navigate around legal issues it has faced in other countries. However, Hong Kong's virtual asset platform licensing regime is seeking to provide greater compliance stability to attract more industry participants. Balancing this new challenge will be a key consideration for Binance's future development.