Binance has reportedly set up a crypto exchange in Hong Kong to apply for a local crypto license, the South China Morning Post reported today, citing three sources familiar with the matter.

The local newspaper reported that HKVAEX was established in December 2022 by the world’s largest crypto exchange and has shown interest in applying for a license in Hong Kong.

Binance and HKVAEX did not immediately respond to The Block’s request for comment.

The two companies share resources despite the fact that HKVAEX was created as a separate entity, according to the report.

HKVAEX told the local media outlet that it is an independent platform operated by its own team and it is currently preparing to apply for a license to operate as a crypto trading platform. Binance told the SCMP that HKVAEX is not in the Binance Group of companies.

Hong Kong beckons

Hong Kong in June launched its crypto retail trading licensing scheme in an attempt to position itself as a major crypto hub in Asia, but Binance has yet to officially show public interest in obtaining such a license. Nikkei Asia reported in March that Binance was hiring officials that it would need to apply for a license to offer services in the city.

Binance has repeatedly said it puts considerable effort into complying with local rules wherever it operates, while it continues to face regulatory trouble and remains embroiled in legal disputes in the U.S. with regulators. The global exchange has also seen a wave of executive departures over the past few months.

Meanwhile, in Taiwan, Binance is applying to get registered for anti-money laundering compliance, The Block previously reported.