HKVAEX, a newly established crypto exchange operating out of Hong Kong, has stated its intention to pursue a crypto licence. The exchange is believed to be backed by Binance.
Two separate entities
Operating as a separate entity to Binance, but having been set up by it, and sharing the same servers and resources, HKVAEX, to all intents and purposes, was set up with the aim of procuring a crypto licence in Hong Kong, as laid out in an exclusive article by the South China Morning Post.
However, both Binance and HKVAEX have stated that they are separate entities. The Hong Kong exchange is said to have responded to an email asking for clarity on its relationship with Binance, in which it stated:
“HKVAEX is an independent virtual asset exchange platform 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] licence.”
For its part, Binance has affirmed that HKVAEX is not a part of the Binance group of companies, although it is not completely clear whether the Hong Kong exchange might be included in the list of Binance affiliates.
Surviving regulatory challenges
Given that Binance is still being prosecuted by legal action launched by the Securities and Exchange Commission (SEC) and is also suffering from regulatory exclusion in certain jurisdictions across the world, a foothold in Hong Kong would be extremely welcome.
According to the South China Morning Post, the chances of Binance being able to secure a crypto licence in Hong Kong for itself would be full of challenges given the regulatory onslaught from the U.S. and the difficulties it faces elsewhere.
As Binance attempts to cut its cloth in order to face its regulatory challenges plus survive the crypto bear market, it has had to lay off workers, withdraw from a lot of its markets in Europe, and discontinue its Visa debit card there.
The company may be looking at trying to survive until the U.S. elections next year. If there is a change of administration, and Gary Gensler perhaps disappears from the SEC, a revival just may be on the horizon.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
