HKVAEX closes operations after withdrawal of Hong Kong license application
HKVAEX, a Hong Kong-based cryptocurrency exchange rumored to have a partnership with global cryptocurrency platform Binance, has decided to withdraw its license application from the Hong Kong Securities and Futures Commission (SFC). The move requires the exchange to cease operations in the region by May 31, marking a significant exit from Hong Kong’s evolving cryptocurrency market.
The HKVAEX Hong Kong compatible cryptocurrency exchange license applied by Binance’s Hong Kong subsidiary BX SERVICES LIMITED has been revoked. The reason for withdrawal is unclear and may include a request to change the audit company, lack of data, etc.
— Wu Blockchain (@WuBlockchain) March 29, 2024
Regulatory issues led to withdrawals
The exchange initially sought regulatory approval on January 4, 2024, in line with Hong Kong’s push to establish itself as a Web3 and cryptocurrency innovation center. The withdrawal of the applications is part of a broader trend of several cryptocurrency platforms reassessing their presence in highly regulated markets. Notably, along with HKVAEX, other platforms such as the popular Huobi exchange have also taken a step back and emphasized the strict regulatory environment.
Description and market movements
HKVAEX has made it clear that it operates independently within Hong Kong’s regulatory framework amid confusion with another exchange, VAEX, and allegations of links to Binance. Binance, which distanced itself from HKVAEX, emphasized its non-affiliation with the Hong Kong-based exchange and highlighted the complexities and interconnected rumors within the cryptocurrency industry. Additionally, the announcement of the closure of CommEx, a Russian exchange historically associated with Binance, highlights the ongoing global realignment within cryptocurrency exchanges due to regulatory and operational issues.
As HKVAEX prepares for closure, the incident highlights the dynamic regulatory environment of Hong Kong’s cryptocurrency market. This highlights the continued evolution of the global cryptocurrency sector amid increasing regulations and the obstacles cryptocurrency exchanges face in complying with local laws.
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