Binance’s Hidden Role in HKVAEX for Hong Kong License

According to sources familiar with the matter, the largest cryptocurrency exchange in the world, Binance, established the crypto derivatives trading platform HKVAEX to obtain a virtual asset trading license in Hong Kong.

HKVAEX, which was founded in December 2017, shares resources and utilizes Binance servers to retrieve content. In addition, the companies have appeared together at multiple events in Hong Kong.

The South China Morning Post reported on October 25 that Binance is the driving force behind HKVAEX’s application for a license in Hong Kong.

According to three industry insiders close to HKVAEX, Binance founded the company in December 2022 to obtain a cryptocurrency license in Hong Kong.

While HKVAEX is a separate entity under BX Services Limited, it utilizes the same servers and resources as Binance to retrieve content.

The primary websites of both companies share similarities, such as code reuse and the use of Binance’s content delivery domain, bnbstatic.com.

The fact that the corporations’ terms of service are identical suggests they may also share legal resources. In addition, Binance and HKVAEX have participated in multiple events in Hong Kong this year.

In March, Binance Academy, BNB Chain, and HKVAEX collaborated with the Blockchain Lab at the University of Hong Kong to host a cryptocurrency workshop.

In April, HKVAEX described Binance as a partner in an account opening promotion. In an email, HKVAEX denied any connection to Binance, stating that it is an independent Hong Kong-based exchange for virtual assets.

A representative for Binance also denied that HKVAEX is affiliated with the largest exchange. In terms of service, “Binance Group” is distinguished from “Binance Affiliates” by its concentration on online exchanges for crypto assets.

Having an independent exchange, HKVAEX, will enable Binance to have a significant presence in Hong Kong despite increased scrutiny and liquidity issues.