Exclusive | Binance is behind the Hong Kong crypto exchange HKVAEX, which is seeking a licence in the city, sources say

Binance, the world’s largest cryptocurrency exchange, is behind a newly established cryptocurrency trading platform in Hong Kong that has announced its intention to apply for a licence in the city, according to sources familiar with the matter.

HKVAEX, which was established in December 2022 and launched its trading platform in February, was set up by Binance to pursue a crypto licence in Hong Kong, according to three industry insiders close to the company, who spoke on the condition of anonymity because the information is private.

HKVAEX was created as a separate entity in Hong Kong under the company BX Services Limited. However, the companies share resources, the people said, and the exchange’s website shows that it is using Binance servers for fetching content.

“HKVAEX is an independent virtual asset exchange platform based in Hong Kong,” the company said in an email in response to questions about its relationship with Binance. “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.”

A Binance representative said, “HKVAEX is not in the Binance Group of companies.” The crypto giant defines “Binance group” in its terms of service as an “ecosystem centred around an online exchange for Digital Assets trading”, and is distinct from “Binance Affiliates’’.

Having an independent exchange in Hong Kong could allow the company to take advantage of the market, which is seeking a greater role in the global crypto industry, while Binance faces increasing legal scrutiny and liquidity issues overseas.