The leading cryptocurrency exchange Binance is taking its digital asset custodian business into the Hong Kong market through an affiliate platform called HKVAEX. According to a local report published on October 25th, HKVAEX is obtaining a crypto-focused license that will allow Binance to operate in the country.
Established in December 2022, HKVAEX operates as a Hong Kong-based virtual asset trading platform. Citing three individuals familiar with the matter, the report revealed that Binance set up the platform under the business company, BX Services Limited.
HKVAEX to Procure Crypto License in Hong Kong
HKVAEX is currently working towards applying for a virtual asset trading platform license with the Hong Kong Securities and Futures Commission.
Notably, HKVAEX’s move to procure a crypto-focused license from the Hong Kong regulator comes shortly after the government declared its plans to impose stricter measures on licensing requirements for crypto custodians after investors were scammed for $128 million by a so-called crypto exchange JPEX.
Introducing a stricter measure entails that HKVAEX may be faced with a hurdle while seeking an endorsement from the country’s financial authorities.
Binance Rep Says HKVAEX is Not Part of Binance Group
Although Binance’s collaboration with HKVAEX can be perceived as an expansion to the Hong Kong financial markets, the crypto exchange remains “silent on the issue” of seeking a license in the country.
A Binance representative added that “HKVAEX is not in the Binance Group of companies.” Rather, the Hong Kong-based platform can be classified as one of Binance’s Affiliates.
Nonetheless, HKVAEX shares resources and uses Binance servers for fetching content. Both companies have been seen together at various events in Hong Kong this year. For example, Binance Academy, BNB Chain, and HKVAEX teamed up with the University of Hong Kong’s Blockchain Lab in a crypto workshop in March.
The following month, HKVAEX described Binance as a partner in a promotional offer for opening an HKVAEX account.
Hong Kong is just one of several countries Binance is expanding its business to in Asia. In July, Binance moved to reenter the Japanese market after it stopped operating in Japan due to its failure to obtain an independent license.
