KuCoin Token

In a recent development on the Hong Kong crypto scene, VAEXC Limited, a cryptocurrency exchange, has submitted an application for a crypto trading license. The move had sparked a misunderstanding as some reports suggested the application was submitted by a Binance-linked company when in fact, it turns out to be a KuCoin-affiliated entity.<h2 id="header-0">Reporting confusion</h2>A <a href="https://medium.com/&#64;coinness.gl/binance-behind-new-hong-kong-crypto-exchange-pursuing-license-412a2b276cec" rel="noopener noreferrer nofollow">report</a> published in October by the South China Morning Post (SCMP) asserted that a newly established crypto exchange named HKVAEX appeared to be connected with global crypto platform Binance.In the meantime, it emerged more recently that an application for a trading license had been submitted by the similarly named VAEXC Limited. While many reports confused this entity with what is believed to be a Binance-linked company, subsequent <a href="https://x.com/WuBlockchain/status/1729315739209969746?s&#61;20" rel="noopener noreferrer nofollow">reports</a> have emerged to confirm that the application pertains to an entity associated with the Seychelles-incorporated cryptocurrency exchange, KuCoin.In response to these initial wayward reports, a HKVAEX spokesperson<a href="https://thecurrencyanalytics.com/crypto-exchanges/cryptocurrency-exchange-hkvaex-clarifies-position-amid-license-application-rumors-in-hong-kong-83669.php" rel="noopener noreferrer nofollow"> confirmed</a> that the company is in the process of preparing a licensing application in Hong Kong but that it has yet to do so. The spokesperson stated:“We are still in the preparatory stages for the application” . . . “VAEXC is an entirely separate applicant, and our operations are completely independent.”<h2 id="header-1">Leveraging KuCoin technology</h2>The SFC <a href="https://www.sfc.hk/en/Welcome-to-the-Fintech-Contact-Point/Virtual-assets/Virtual-asset-trading-platforms-operators/Lists-of-virtual-asset-trading-platforms" rel="noopener noreferrer nofollow">updated</a> the list of virtual asset trading platform applicants on Nov. 27, disclosing that Hong Kong VAEXC Limited submitted its application on Nov. 25. Operating under the name VAEX, the exchange places a strong emphasis on security and regulatory compliance, positioning itself as a next-generation, trusted virtual asset exchange.Backed by a team with extensive industry expertise and leveraging KuCoin Tech, VAEX aims to offer a secure, reliable, stable and user-friendly platform for crypto asset trading and management. In celebration of VAEX’s launch, KuCoin <a href="https://www.kucoin.com/news/welcome-to-vaex" rel="noopener noreferrer nofollow">conducted</a> a public testing campaign, featuring a 15,000 USDT prize pool for eligible KuCoin users and participants.Despite the recent scandals in Hong Kong’s crypto scene — including an alleged fraud at the JPEX crypto exchange and more recently still, an alleged <a href="https://www.scmp.com/news/hong-kong/law-and-crime/article/3242923/hounax-scam-hongkongers-who-lost-hk120-million-cryptocurrency-platform-say-watchdog-warning-came-too" rel="noopener noreferrer nofollow">Ponzi scheme</a> orchestrated by unlicensed crypto exchange Hounax — the regulatory stance in Hong Kong remains unwaveringly positive where digital assets are concerned.Introduced in June, regulations in Hong Kong mandate cryptocurrency exchanges to apply for a Virtual Asset Service Provider (VASP) license from the SFC by June 2024 or face de-registration. Notably, unregistered exchanges are permitted to operate during the interim transition period.KuCoin’s investment arm, KuCoin Ventures, has also been active in Hong Kong. In March, the firm <a href="https://cointelegraph.com/news/kucoin-leads-10m-funding-for-chinese-yuan-stablecoin-issuer" rel="noopener noreferrer nofollow">led</a> a $10 million investment in CNHC, a Hong Kong-based stablecoin issuer. Three months later, amid a changing regulatory environment in 2023, the platform confirmed a tightening of its compliance procedures with the <a href="https://medium.com/&#64;coinness.gl/kucoin-ups-compliance-via-mandatory-kyc-5ad720ea2750" rel="noopener noreferrer nofollow">introduction</a> of mandatory know-your-customer (KYC) identity checks.Meanwhile, it’s unclear as to what plans Binance has to expand in Hong Kong if any. The leading global exchange is <a href="https://medium.com/&#64;coinness.gl/singaporean-takes-helm-at-binance-as-cz-steps-aside-f73745a8cdb4" rel="noopener noreferrer nofollow">facing</a> very challenging legal issues in the United States currently. That could have a bearing on its plans in Hong Kong, while it remains unclear as to what level of involvement it has with HKVAEX.

KuCoin affiliate applies for license in Hong Kong amid identity mix-up

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