Binance-linked HKVAEX Officially Stops Supporting Hong Kong Users From April 30

Key Points:

• Binance-linked HKVAEX crypto exchange announces permanent closure, urging users to withdraw assets by April 30, 2024.
• Despite launching its trading platform in 2023, HKVAEX withdrew its license application with the SFC in March 2024.
• Concerns arise over HKVAEX’s ties to Binance and the high compliance costs of obtaining a license in Hong Kong.

Hong Kong-based crypto exchange HKVAEX, affiliated with Binance, has announced the permanent closure of its trading platform.

Binance-linked HKVAEX Crypto Exchange Announces Permanent Closure

In a notice posted on its official website, Binance-linked HKVAEX informed users that the platform will cease operations, urging them to withdraw their assets by April 30, 2024.

The decision comes just over a year after HKVAEX launched its virtual asset trading platform (VATP) in February 2023. The move was aimed at securing its position as a pre-existing service provider to meet regulatory requirements set by the Securities and Futures Commission (SFC). However, despite submitting its license application well ahead of the deadline, the SFC website indicates that the application was withdrawn on March 28, 2024.

Following the withdrawal of its license application, Binance-linked HKVAEX announced the suspension of its services in phases, starting from April 1, 2024, with the official website set to be completely shut down on May 1, 2024.

Binance Affiliation and Compliance Costs

Reports suggest that the withdrawal of HKVAEX’s license application could be attributed to incomplete documentation or other reasons. However, the exchange did not provide a specific reason for its decision to shut down before the SFC’s application process concluded.

HKVAEX’s ties to Binance have been under scrutiny, with reports indicating similarities in their operations and shared legal resources. Additionally, concerns have been raised about the high compliance costs associated with obtaining a license in Hong Kong, along with stringent requirements such as cold storage reserves, which exceed those in neighboring markets like Singapore.