Binance has reportedly established a cryptocurrency exchange within the jurisdiction of Hong Kong, with the intention of pursuing a local cryptocurrency license.
This revelation comes from three sources intimately acquainted with the matter, as reported by the South China Morning Post.
The local publication provided additional information. It revealed that HKVAEX came into existence in December 2022. This venture is a partnership between the world’s most prominent cryptocurrency exchange and Hong Kong’s pursuit of licensing goals.
Currently, both Binance and HKVAEX have refrained from responding to inquiries made by The Block concerning this issue. Notably, these two organizations collaborate and share resources, despite HKVAEX being presented as a seemingly separate entity, as indicated in the report.
In a statement provided to local media, HKVAEX clarified its position as an independent platform. It is autonomously managed by its dedicated team and is currently in the process of preparing to apply for a license.
The ultimate aim is to operate as a cryptocurrency trading platform.. In contrast, Binance clarified to the SCMP that HKVAEX does not fall under the Binance Group’s umbrella of companies.
Hong Kong: Ambitions in the World of Cryptocurrency
In June, Hong Kong launched its initiative for cryptocurrency retail trading licensing, positioning itself as a potential hub for cryptocurrency activities in Asia. It’s worth noting that Binance has not made an official declaration of its intent to pursue such a license.
This is despite reports from Nikkei Asia in March indicating that Binance was actively recruiting officials with the specific goal of obtaining service authorization within the city.
Furthermore, Binance has consistently stressed its commitment to complying with local regulatory standards in all its operational expansions. However, the company currently confronts enduring regulatory obstacles. It remains entangled in legal disputes with U.S. regulatory bodies. Over the past few months, the global exchange has seen a significant departure of key executives.
In a simultaneous development, Binance has initiated the process of applying for Anti-Money Laundering (AML) compliance registration in Taiwan. This was previously revealed in a report by The Block.