Binance Allegedly Backs New Crypto Exchange in Hong Kong

Binance Allegedly Connected to HKVAEX in Hong Kong

According to a report by the South China Morning Post, Binance, the well-known cryptocurrency exchange, appears to have ties with a newly established trading platform in Hong Kong called HKVAEX. The platform, which was launched in February, has expressed its intention to apply for a crypto license in the city.

Insiders Suggest Binance’s Involvement

Insiders close to the matter claim that Binance is behind HKVAEX’s efforts to secure a license in Hong Kong. Although HKVAEX operates as a separate entity under BX Services Limited, it is believed that the two companies share resources. Furthermore, HKVAEX’s website indicates its utilization of Binance servers for content retrieval.

Binance Denies Connection

Despite these claims, Binance has explicitly stated that HKVAEX is not part of its group of companies. Binance distinguishes its “Binance group” as a separate ecosystem centered around its digital assets exchange. However, establishing an independent exchange in Hong Kong could provide Binance with opportunities in a market aiming to play a larger role in the global crypto industry.

Pursuing a Hong Kong License

Hong Kong’s new licensing scheme has attracted several exchanges with ties to China who aim to obtain legal stability. While many exchanges have expressed their intentions to pursue a license, Binance has remained relatively silent on the matter. HKVAEX is prepared to submit an application for Hong Kong’s virtual asset license and evidence suggests its connection to global exchanges like Binance.

Hot Take: Binance Expands Influence in Hong Kong Crypto Market

Binance’s alleged involvement with HKVAEX signals its desire to expand its influence in the Hong Kong crypto market. By supporting HKVAEX’s efforts to obtain a license, Binance can tap into the opportunities presented by Hong Kong’s growing crypto industry. This strategic move comes at a time when Binance faces legal scrutiny and liquidity challenges in various international markets. Despite denying any connection to HKVAEX, Binance’s association with the platform raises questions about shared resources and similarities between their websites.