Popular exchange Binance has announced that, as from today, users can trade in cryptocurrency by depositing and withdrawing Hong Kong dollars (HKD). The development comes through a partnership between Binance and the Hong Kong-based payment service, Epay.
— Binance (@binance) February 24, 2020
Granted a Hong Kong money service operators licence in 2014 and now with branch offices worldwide, Epay already provides Binance customers with the facility to transact in euros and British pounds.
Growing Fiat Deposits
In recent months, Binance has aggressively sort to add fiat options for traders leading to an agreement with Simplex, an Israeli payment processor, to enable fifteen currencies on the exchange platform including the South Korean won (KRW), Russian ruble (RUB) and Swiss franc (CHF).
The growth of fiat on-ramps to the exchange has been one positive note that has stood out in a challenging week for Binance who have faced allegations of irregularity. The company’s CEO, Changpeng Zhao, took to social media in response to suggestions of operating licence difficulties in Malta.
BREAKING: Nothing has changed in Malta, for Binance or any other crypto exchanges. No licenses were granted to anyone by Malta, as of yet.
Some media, even crypto media, has such a bad habit of releasing misleading news that only hurts their own credibility and our industry. https://t.co/C9MdCngx70
— CZ Binance 🔶🔶🔶 (@cz_binance) February 21, 2020
While the future of cryptocurrency exchange licences remain a hot topic within the industry, Hong Kong residents are more likely to be focusing on the immediate impact of now being able to transact into cryptocurrency using their local currency.
With at least one prominent hedge fund manager predicting a Hong Kong banking collapse this year and actively shorting the HKD, holders of the fiat currency may choose to overlook the exchange licence debate and seek safety in an emerging asset class.