Is Binance Seeking a Hong Kong License Through HKVAEX? Unveiling the Connection

We uncover the mystery surrounding HKVAEX and Binance, detailing shared resources, conflicting statements, and recent joint appearances.

Dive in to understand the unfolding story.

Is HKVAEX an Affiliate of Binance?

Recent reports by the South China Morning Post (SCMP) reveal that Binance, a major cryptocurrency exchange, may be attempting to secure a license in Hong Kong via a crypto exchange known as HKVAEX.

Although there has been no official statement from either party, SCMP reports that three anonymous industry insiders close to Binance stated that HKVAEX was established in December 2022 with the aim of obtaining a virtual currency license in Hong Kong.

The exchange was reportedly set up under "BX Services" as a business entity in Hong Kong.

Sources suggest that HKVAEX and Binance share resources, as indicated by the use of Binance's servers for content retrieval on the HKVAEX website.

Conflicting Statements on Affiliation

Contrary to these claims, both companies have issued statements that appear to negate a close association.

HKVAEX has responded to questions about its relationship with Binance by stating, "HKVAEX is an independent virtual asset trading platform based in Hong Kong."

Similarly, a Binance representative has been reported saying, "HKVAEX is not part of Binance's group of companies."

SCMP adds that Binance defines its group in its terms of service as "an ecosystem centered around digital asset trading," distinct from its affiliated companies.

Multiple Indicators Pointing to a Connection

As early as April, the relationship between HKVAEX and Binance had already become a topic of discussion.

A HKVAEX spokesperson previously commented that while they operate independently with their own tech team, they also source from global exchanges like Binance.

Moreover, both companies have jointly appeared at multiple events in Hong Kong in 2023.

In March, Binance Academy, BNB Chain, and HKVAEX collaborated with the University of Hong Kong’s blockchain research lab on a cryptocurrency workshop.

In April, Binance was described as a "partner" in a HKVAEX account opening promotional offer.

SCMP also notes additional similarities, such as matching templates in the terms of service on both companies' websites, Binance.com and HKVAEX.hk.

While it's unclear whether HKVAEX is indeed a business entity established by Binance, the reporting has attracted attention, especially since other major crypto exchanges are making moves to enter the Hong Kong market, and no such moves have been observed from Binance.