Crypto Exchange HKVAEX Applies for Virtual Asset Trading License in Hong Kong
Crypto exchange HKVAEX, rumored to be backed by Binance, has recently submitted an application for a virtual asset trading platform license with the Securities and Futures Commission (SFC) of Hong Kong. This move makes HKVAEX one of the latest platforms to seek regulatory approval in the region.
Growing Trend
HKVAEX joins Panthertrade and OKX as crypto platforms that have applied for a virtual asset trading platform license this month. The increased interest in obtaining a license demonstrates the growing recognition of the importance of regulatory compliance in the cryptocurrency industry.
“The JPEX scandal, considered one of the largest financial frauds in Hong Kong’s history, has accelerated the approval process for cryptocurrency products,” said Hu Zhenbang, CFO of OSL, a licensed virtual asset platform. “Regulators are now closely monitoring non-compliant platforms to prevent them from engaging in excessive advertising practices seen in the past.”
HKVAEX and Binance
HKVAEX, which was established in December 2022 and launched its trading platform in February, is reportedly created by Binance with the specific aim of obtaining a crypto license in Hong Kong. According to insider sources cited by The South China Morning Post, HKVAEX operates as a separate entity but shares resources with Binance.
“HKVAEX is an independent virtual asset exchange platform based in Hong Kong,” claims a representative of the exchange, refuting allegations of being closely tied to Binance.
This collaboration aligns with Hong Kong’s new regulatory framework for crypto, which allows retail investors to trade virtual assets and provides licenses to crypto exchanges. So far, OSL and HashKey are the only platforms that have had their licenses approved by the SFC.
The Future of Tokenized Platforms
The potential benefits of integrating tokenized platforms with banks have attracted the interest of financial technology solution providers. By leveraging the public’s trust in banks, such integration could contribute to the growth of the virtual asset industry.
Regarding this opportunity, Hu Zhenbang of OSL suggests, “Regulatory authorities are expediting product approvals post-JPEX scandal. This means that non-compliant platforms will face stricter monitoring, ensuring they do not engage in excessive advertising practices like before.”
