[NEWS] Binance to enter Hong Kong through cryptocurrency exchange HKVAEX

It has emerged that major cryptocurrency exchange Binance may be applying for a license in Hong Kong. The South China Morning Post (SCMP) reported on the 25th.

According to three sources familiar with the matter, the cryptocurrency exchange HKVAEX, which was established last December, was launched by Binance with an eye on obtaining a license as a cryptocurrency business in Hong Kong.

HKVAEX was established through Hong Kong's BX Services Limited. However, according to the sources, the two companies share resources, and the HKVAEX website uses Binance's servers to retrieve content.

HKVAEX told SCMP, "We are an independent platform and are currently preparing to apply for a license to operate as a cryptocurrency exchange," denying that it is a Binance group company. Binance also seems to have explained, "HKVAEX is not a group company of ours."

There have been multiple contacts between HKVAEX and Binance in the past regarding their relationship. At an event held in Hong Kong in March this year, both companies appeared together, and it seems that Binance was also promoted as a partner when opening an account at HKVAEX. In addition, SCMP points out that the terms of use are similar to those of Binance.

New cryptocurrency regulations came into effect in Hong Kong in June this year, and a license must be obtained in order to provide cryptocurrency exchange services. In August, HashKey Exchange, a subsidiary of the HashKey Group, obtained a license to provide the first cryptocurrency exchange for retail customers in Hong Kong.

While Binance is expanding its services in Japan and other countries, it is also facing some difficulties in the United States, where it has been sued by the SEC (U.S. Securities and Exchange Commission) for violating securities laws. Recently, it updated the terms of use for its U.S. corporation, Binance.US, and suspended users' withdrawals in U.S. dollars.

Given this situation, it is expected that it will be difficult for the time being to expand its services in the United States as before, so it is possible that it is focusing on Hong Kong, Asia's leading financial center, and making preparations behind the scenes.

Reference:Announcement
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