Crypto Clarity: HKVAEX's License Journey Unveiled

HKVAEX, the cryptocurrency exchange headquartered in the vibrant city of Hong Kong, wants to set the record straight amidst a flurry of erroneous reports. According to a spokesperson from HKVAEX, they are yet to embark on the formal application process for obtaining a virtual asset trading platform license from Hong Kong's Securities and Futures Commission (SFC). Dismissing the misinformation, the representative emphasized that, at present, they are diligently preparing for the impending application.

In a statement made on November 27, the HKVAEX spokesperson clarified, "We are actively engaged in the application process, which is currently in progress." It's crucial to distinguish HKVAEX from VAEXC, as the latter took the initiative to apply for a crypto license in Hong Kong on October 25, as indicated by data from the SFC.

Seeking to dispel any potential confusion, the spokesperson underscored, "VAEXC is an entirely separate applicant, and their activities have no correlation with ours." This statement aims to ensure that any perceived connection between HKVAEX and VAEXC is promptly clarified.

Hong Kong VAEXC license application. Source: SFC

This development unfolds against the backdrop of recent reports from the reputable South China Morning Post (SCMP), suggesting a connection between Binance and HKVAEX. According to sources cited by SCMP, Binance purportedly played a role in the establishment of HKVAEX with the objective of securing a coveted crypto license in Hong Kong. The report also hinted at a technical affiliation, stating that HKVAEX's website relies on Binance servers for content retrieval. Despite these claims, neither HKVAEX nor Binance has provided official comments regarding the alleged ties between the two platforms.

The logos of cryptocurrency exchanges HKVAEX and Binance. Source: SCMP

Adding another layer of complexity to the narrative, SFC data as of November 27 reveals that OSL Digital Securities and HashKey are the sole entities holding licenses as virtual asset trading platform operators. These two exchanges made headlines in August 2023 as trailblazers, becoming the first crypto platforms to extend their trading services to retail customers in Hong Kong, aligning with the recently implemented crypto regulations in the region.

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