VAEXC Limited, a Hong Kong-based cryptocurrency exchange, recently submitted an application for a compliance exchange license, as disclosed on the Hong Kong Securities and Futures Commission [SFC] website. Contrary to initial assumptions, VAEXC Limited is not affiliated with Binance, as it was mistakenly linked due to its name similarity with HKVAEX, which is considered a Binance HK entity. Blockchain technology analyst Colin Wu clarified that HKVAEX is in the preparation phase and has not submitted an application, urging the public not to confuse it with the announced VAEXC.
The SFC updated the list of virtual asset trading platform applicants on November 27th, revealing that Hong Kong VAEXC Limited officially submitted its application on November 25th. The exchange, known as VAEX, prioritizes security and regulatory compliance, positioning itself as a next-generation trusted virtual asset exchange. With a team boasting extensive industry expertise and leveraging KuCoin Tech, VAEX aims to provide a secure, reliable, stable, and user-friendly platform for crypto asset trading and management.
In honor of VAEX’s launch, KuCoin is initiating a public testing campaign, offering a 15,000 USDT prize pool to eligible KuCoin users and participants. Meanwhile, the “crypto-friendly” destination was marred with recent scandals. On Nov. 25, Hounax, an unlicensed crypto exchange, reportedly duped 131 residents out of 120 million HKD [$15.4 million] through yet another alleged Ponzi scheme. Despite this, Hong Kong’s regulatory approach remains steadfast.
Hong Kong’s SFC: 1-Year Grace Period Remains In Force
Julia Leung, the CEO of Hong Kong’s Securities and Futures Commission, emphasized that the one-year grace period for digital asset exchanges operating in the special administrative region will persist. Leung explained that even if the grace period were to end, fraud could still occur, and therefore, there are no immediate plans to modify the grace period and associated measures.
Under regulations introduced in June, cryptocurrency exchanges in Hong Kong are required to apply for a virtual asset service provider [VASP] license from the SFC by June 2024 or face deregistration. Despite this, unregistered exchanges are allowed to operate during the interim transition period. The decision to maintain the grace period reflects a pragmatic approach, acknowledging the challenges of completely eradicating fraudulent activities in the cryptocurrency space and allowing exchanges time to comply with the regulatory framework.