Hong Kong-based HKVAEX Submits Application for Virtual Asset Trading Platform License

Cryptocurrency exchange HKVAEX, backed by Binance, recently applied for a virtual asset trading platform license with Hong Kong’s Securities and Futures Commission (SFC). This move follows the implementation of new regulations in Hong Kong, allowing retail investors to trade virtual assets. 

The application was submitted on November 25, making HKVAEX the latest platform to seek regulatory approval in the region.

📑 Binance-Linked Crypto Exchange HKVAEX Applies for Virtual Asset Trading Platform License in Hong Kong

Crypto exchange #HKVAEX has applied for a virtual asset trading platform license with Hong Kong’s Securities and Futures Commission.#CryptoNews https://t.co/FWnzkXWe1C

— Cryptonews.com (@cryptonews) November 27, 2023

In June, Hong Kong introduced a regulatory framework for cryptocurrencies, expanding access to virtual asset trading beyond professional investors with substantial bankable assets. 

The new rules also enable the SFC to issue licenses to crypto exchanges, with OSL and HashKey being the first two platforms to receive approval.

Binance’s Connection to HKVAEX

According to an October report from The South China Morning Post, Binance, the world’s largest cryptocurrency exchange, is believed to be behind the establishment of HKVAEX. 

Although HKVAEX maintains its independence, allegations suggest it shares resources with Binance, including using Binance servers for content retrieval. HKVAEX, created in December 2022, launched its trading platform in February, focusing on obtaining a crypto license in Hong Kong.

The recent JPEX scandal considered one of the largest financial frauds in Hong Kong’s history, has prompted the government to expedite the approval process for cryptocurrency products. 

This acceleration aims to enhance industry compliance and foster the integration of tokenized platforms with banks, leveraging public trust to promote the growth of the virtual asset industry.

HKVAEX’s application for a virtual asset trading platform license aligns with a broader trend in the industry. Panthertrade and OKX are among other crypto platforms that have submitted similar applications this month. 

The surge in regulatory activity comes as financial technology solution providers express interest in the benefits of integrating tokenized platforms with traditional banks.

As Hong Kong continues to navigate its evolving crypto regulatory landscape, the application by HKVAEX, reportedly linked to Binance, underscores the industry’s commitment to compliance. 

The move aligns with a broader global trend toward regulatory clarity in cryptocurrency, providing a foundation for sustainable growth and increased investor confidence.