Binance, the largest cryptocurrency exchange by trading volume, is reportedly backing HKVAEX, a Hong Kong-based cryptocurrency trading platform, to secure a local crypto license in the region, the South China Morning Post (SCMP) reported on October 25.
HKVAEX was established as a separate entity in December 2022, but reportedly shared resources with Binance.
HKVAEX informed SCMP that it is an independent platform with a dedicated team managing it. The platform is currently in the process of applying for a license to operate as a cryptocurrency trading platform.
On the other hand, a Binance spokesperson stated that HKVAEX had no affiliation with the Binance Group.
Binance and HKVAEX have not yet responded Crypto Slates request for comment as of press time.
In recent months, numerous cryptocurrency exchanges, including OKX, have expressed interest in expanding into Hong Kong following the introduction of new regulations allowing retail licensing. Despite this trend, Binance has not disclosed its intentions regarding acquiring such a license in the region.
Binance regulatory issues
Binance continues to face heightened scrutiny of its operations in several jurisdictions worldwide.
In the US, the Changpeng Zhao-led company is facing legal charges from the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) for violations of federal laws. Additionally, the Department of Justice (DOJ) is reportedly considering charges against the exchange.
Across the Atlantic, the cryptocurrency trading company has withdrawn from several European markets, such as the Netherlands and Cyprus, due to difficulties in obtaining local licenses.
In addition to these regulatory concerns, Binance has recently faced a series of departures from its senior leadership team.
Despite these issues, the exchange maintains that it strives to remain compliant with local laws wherever it operates.