According to the article published by South China Morning Post on October 25, the cryptocurrency derivatives trading platform HKVAEX, which has taken action to obtain a license in Hong Kong, is backed by Binance. According to three sector employees close to HKVAEX, the company was established by Binance in December 2022 to obtain a VASP license in Hong Kong.
Although HKVAEX is a separate company under BX Services Limited, it uses resources and servers from Binance to obtain content. Both companies share similarities such as their main websites, shared codes, and the use of Binance’s content distribution domain, bnbstatic.com. The terms of use of the companies are also the same, indicating that both companies may share the same legal resources.
Furthermore, Binance and HKVAEX have participated in various events together in Hong Kong this year. In March, Binance Academy, BNB Chain, and HKVAEX collaborated in a cryptocurrency workshop with Hong Kong University’s Blockchain Laboratory. In April, HKVAEX listed Binance as a partner in a promotional offer to open an account.
Denial from HKVAEX and Binance
In response to the allegations raised by South China Morning Post, HKVAEX stated that the company is an independent virtual asset exchange in Hong Kong and denied the claim that it is connected to Binance. In a statement from HKVAEX, it was stated that “The platform is operated by a team of professionals from the financial services sector, technology, and experienced professionals, and is currently preparing to apply for a virtual asset trading platform license from the Securities and Futures Commission of Hong Kong.” A representative from Binance also denied the claim that HKVAEX is associated with the largest cryptocurrency.
Experts evaluate that despite the denial, Binance having ownership of an independent cryptocurrency exchange like HKVAEX will allow it to have a significant presence in Hong Kong amidst increased regulatory scrutiny and liquidity issues.
