A digital asset exchange platform with ties to crypto titan Binance has reportedly announced that it plans to apply for a license in one of Asia’s major financial centers.
According to the South China morning mailHKVAEX was established as a separate entity under the company BX Services Limited, but Binance is behind it.
HKVAEX was founded in December and launched its trading platform in February.
Citing sources familiar with the matter, the report says the world’s largest crypto exchange has formed HKVAEX to pursue a crypto license in Hong Kong.
According to the report, both companies and their executives jointly participated in public events in Hong Kong. Their websites, Binance.com and HKVAEX.hk, also bear striking similarities to shared code and use of Binance’s content delivery domain bnbstatic.com. In April, HKVAEX featured Binance as a partner in an account opening promotional offer.
The Changpeng Zhao exchange does not consider the company part of the Binance Group. HKVAEX also says it is an independent virtual asset exchange platform based in Hong Kong.
“It is managed by a team of technology and seasoned financial services professionals who are currently preparing to apply for the [Securities and Futures Commission’s virtual asset trading platform] license.”
The report on HKVAEX’s plans to secure a license in Hong Kong comes after the city rolled out a new licensing system aimed at attracting players in the crypto industry.
Say Julia Leung, CEO of the Securities and Futures Commission (SFC) of Hong Kong, on the new rules,
“The comprehensive regulatory framework for virtual assets in Hong Kong follows the principle of ‘same activities, same risks, same rules’ and aims to provide robust investor protection and manage key risks. This allows the industry to develop sustainably and support innovation.”
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