Binance, the largest cryptocurrency exchange by trading volume, is reportedly backing HKVAEX, a Hong Kong-based cryptocurrency trading platform, to secure a local crypto license in the region, the South China Morning Post (SCMP) reported on Oct. 25.
HKVAEX was established in Dec. 2022 as a separate entity but reportedly shared resources with Binance.
HKVAEX informed SCMP that it is an independent platform with a dedicated team that manages it. The platform is presently in the process of seeking a license to operate as a cryptocurrency trading platform.
On the other hand, a Binance spokesman stated that HKVAEX had no affiliation with the Binance Group of companies.
Binance and HKVAEX have yet to reply to CryptoSlate’s request for comment as of press time.
In recent months, numerous cryptocurrency exchanges, including OKX, have shown interest in expanding to Hong Kong following the introduction of new regulations permitting licenses for retail trading. Despite this trend, Binance has not disclosed its intentions regarding acquiring such a license in the region.
Binance regulatory struggles
Binance continues to face heightened regulatory scrutiny over its operations across several jurisdictions globally.
In the U.S., the Changpeng Zhao-led firm faces legal charges from the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) over its violations of federal laws. Additionally, the Department of Justice (DOJ) is reportedly weighing charges against the exchange.
Across the Atlantic, the cryptocurrency trading company has withdrawn from various European markets, such as the Netherlands and Cyprus, due to challenges in obtaining local licenses.
In addition to these regulatory concerns, Binance has recently experienced a series of departures from its senior leadership team.
Despite these issues, the exchange has maintained that it strives to remain compliant with local laws wherever it operates.