Binance HKVAEX Withdraws License Application in Hong Kong After Deadline

Mar. 30, 2024
Binance HKVAEX Withdraws License Application in Hong Kong After Deadline

HKVAEX,  linked to the world’s largest crypto exchange Binance, which goes by its company name, BX Services Ltd, has withdrawn its virtual asset trading platform license application. The SFC website now lists BX Services Ltd among the companies whose license applications have been returned, refused, or withdrawn in Hong Kong.

On Thursday, March 28, this license application was withdrawn without reason. Some believe it could be due to a change in the accounting firm, a lack of documents, or other reasons. On January 4, HKVAEX made an application for the license.

Hong Kong sets a February 29 deadline for crypto exchange applications. Subsequently, the non-compliant platforms will have 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.

Moreover, the regulator received license applications from 22 crypto trading platforms, including four exchanges that had applied under the SFC’s previous opt-in regime for crypto trading platforms.

Despite attempts to clarify HKVAEX’s ties with Binance and the rationale behind withdrawing its Hong Kong application, Binance remained unresponsive to requests for comment.

In 2024, three virtual asset trading platforms, including the globally prominent Huobi, withdrew their operational license applications. The reasons for their withdrawal remained undisclosed, as observed.

Binance Affiliation Speculation

During its launch, individuals mistakenly associated HKVAEX with VAEX, another crypto exchange in Hong Kong operating under KuCoin. At that time, a representative of HKVAEX stated, ‘Another applicant is called VAEXC, and they are not us.’

Furthermore, CommEx, a Russian crypto exchange with strong ties with Binance, officially announced it was shutting down operations. It has halted deposits on March 25.

“We have to let you know that we will gradually stop operating on the CommEX platform,” the company said, asking users to move their assets into third-party wallets immediately.

In early September 2023, Binance hinted at its withdrawal from Russia. This followed the resignation of key local executives, including Gleb Kostarev, Vice President of Eastern Europe. CommEx then clarified that it operated independently from Binance, although some key members are ex-Binance employees.

Related Reading | Fidelity Takes Major Step Toward Launching Spot Ethereum ETF

Rida Fatima

News writer
An ardent wordsmith with a rich five-year background in delving into the realms of finance and cryptocurrencies. Alongside curating captivating blogs, Unique's talents extend to crafting imaginative and engaging content.