Binance’s HKVAEX Ceases Operations, Users Must Withdraw Funds Before This Date

In a dramatic twist in Hong Kong blockchain ecosystem, Binance’s Hong Kong associate HKVAEX recently revealed a statement, requesting all users to withdraw funds from the platform by April 30. The crypto exchange HKVAEX to cease all operations starting May 1 and stop all trading services from April 5. Hong Kong has taken a major shift towards crypto, before approving spot Bitcoin ETFs.

This comes following the firm’s withdrawal of its virtual asset trading platform license application from the Hong Kong Securities and Futures Commission (SFC). The Hong Kong securities regulator earlier asked crypto exchanges and firms to apply for the license before the deadline of February 29.

HKVAEX Withdraws License Application in Hong Kong

The 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Ltd now positions itself under the list of companies whose license applications have been returned, refused, or withdrawn on Hong Kong’s SFC website.

The license application was withdrawn on Thursday, March 28 and the reasons behind the withdrawal are unclear.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.

Hong Kong set a Feb. 29 deadline for crypto exchange applications. Subsequently, the non-compliant platforms were mandated to cease services by the end of May, as per the announcement. Hong Kong’s transition towards becoming a crypto hub underscores its ambition to stay at the forefront of innovation, despite uncertainties about its future.

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Binance Relations to HKVAEX

South China Morning Post reported that Binance is behind the establishment of HKVAEX, citing anonymous industry insiders. The report suggests that Binance set up HKVAEX, which commenced operations in February 2023, to proceed with the licensing process in Hong Kong.

Despite these claims, HKVAEX has maintained its stance as an independent entity. HKVAEX in an email denied its link with Binance, saying the company is an independent virtual asset exchange in Hong Kong.

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.

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