Binance Crypto Exchange HKVAEX Ceases Withdrawals in Hong Kong Amid ETFs Debut

The crypto exchange HKVAEX linked to the world’s largest crypto exchange Binance to now fully ceased operations in Hong Kong, as reported earlier by CoinGape. HKVAEX recently revealed a statement to cease withdrawals from the crypto exchange on April 30, shutting down all operations starting May 1.

The cease in operations coincides with the launch of spot Bitcoin and spot Ether ETFs in Hong Kong. Regardless of the hype, ETFs saw only $12 million in volume on the day. Bloomberg senior ETF analyst Eric Balchunas said the volume is impressive based on the market. He also dismissed negative comments around the supposed “poor performance” of these funds.

Binance’s HKVAEX Withdraws License Application in Hong Kong

Binance-linked crypto exchange HKVAEX, also going by the company name BX Services Ltd, recently withdrew its virtual asset trading platform license application. With this, BX Services Ltd now positions itself under the list of companies whose license applications have been returned, refused, or withdrawn on Hong Kong’s SFC website.

The Hong Kong securities regulator earlier asked crypto exchanges and firms to apply for the license before the deadline of February 29.

HKVAEX withdrew its license on March 28 on reasons that still remain unclear. Some believe it may be due to a request to change the audit company, insufficient materials, or others. HKVAEX applied for the license on January 4. HKVAEX head of operations Walton Chan announced the closure and said users should withdraw their assets by April 30.

Also Read: Ripple Vs SEC News: Lawyers Reveal Likely Verdict In XRP Expert Witness Case

SFC Tensions With CZ and Hong Kong Disappointing ETF Debut

SFC Licensing Head Elizabeth Wong raised crucial questions about Binance’s potential license approval after the recent guilty plea by Binance co-founder and former CEO Changpeng ‘CZ’ Zhao to US anti-money-laundering laws. The regulator seemed wary of the exchange’s plans to secure a license in the country.

CZ sentence hearing is due today for violation of anti-money laundering laws. Prosecutors seek 3 years of prison sentence and CZ asked for probation similar to BitMEX executives.

The total trading volume for Hong Kong crypto ETFs reached a notable $12.4 million. The low numbers led traders to immediately short Bitcoin causing the BTC price to drop below $61,000 today.

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