Binance, the world’s largest crypto exchange, recently launched the HKVAEX crypto derivatives trading platform in Hong Kong. The primary goal of this initiative is to acquire a virtual asset trading license in that region. Insiders have disclosed that HKVAEX, established in Dec of the previous year, maintains a strong partnership with Binance. They not only collaborate closely but also leverage BNB servers for accessing content.
According to a report by the South China Morning Post on Oct 25, Binance has been revealed as the driving force behind HKVAEX, a virtual asset derivatives exchange. The company’s motive is to acquire a cryptocurrency license in Hong Kong. Insiders closely affiliated with HKVAEX have disclosed that BNB established the platform in Dec 2022 for this exact purpose.
HKVAEX operates independently under BX Services Limited, but it collaborates with Binance by utilizing their resources and servers to access content. A noteworthy similarity can be observed between the primary websites of both companies, including shared code and reliance on Binance’s content delivery domain, bnbstatic.com. Additionally, the terms of use exhibit a striking resemblance, suggesting the possibility of shared legal resources between them.
Additionally, Binance and HKVAEX have appeared together at various events in Hong Kong throughout the year. Specifically, they collaborated with the University of Hong Kong’s Blockchain Lab in March for a crypto workshop that featured Binance Academy and BNB Chain. Moreover, in April, HKVAEX recognized BNB as a partner during a promotional campaign promoting account opening.
Binance & HKVAEX Dispute Relationship Claims
In their email response, HKVAEX distanced themselves from BNB and asserted their autonomy as a virtual asset exchange based in Hong Kong.
It’s operated by a team of technology and seasoned professionals from the financial services sector, currently preparing to apply for the [Securities and Futures Commission’s virtual asset trading platform] license.
A spokesperson from Binance dismissed any association between HKVAEX and the leading exchange. They have clarified that the “Binance group,” as defined in their terms of service, primarily focuses on facilitating online crypto asset exchanges and operates independently from “Binance Affiliates.”
Binance, however, has been accused by the Hong Kong Regulatory Authority of operating without a legal license. Despite these accusations, BNB asserts that their actions align with Hong Kong’s laws and regulations. Interestingly, BNB holds the distinction of being the first cryptocurrency exchange to voluntarily cease operations in Hong Kong.
HKVAEX is currently in the process of preparing to apply for the virtual asset trading platform license issued by the SFC. If successful, this license will grant HKVAEX legal permission to function as a cryptocurrency exchange within Hong Kong.
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