HKVAEX, a cryptocurrency exchange based in Hong Kong and connected with Binance, has decided to withdraw its license application from the Securities and Futures Commission (SFC). This decision was made after the application was originally submitted on January 4th and is ahead of the required deadline of May 31st for unlicensed operations to cease.

Regulatory Challenges in Hong Kong

The SFC had set a deadline of February 29th for digital currency trading platforms to apply for licenses to operate in the region. HKVAEX's withdrawal has been confirmed on the SFC's official website, meaning the platform will need to cease operations in Hong Kong by the end of May.

Other Exchanges Take Similar Actions

HKVAEX is not the only exchange to withdraw its license application. Three other cryptocurrency platforms, including Huobi exchange, have also decided to retract their applications this year. The reasons behind these decisions have not been disclosed, leading to speculation within the cryptocurrency community about potential factors such as changes in auditing firms or requests for additional information by regulators.

During HKVAEX's launch, there was confusion about its connection to another exchange called VAEX. HKVAEX clarified that VAEX is a separate entity with no affiliation. Additionally, a Russian exchange called CommEx, associated with Binance, announced its closure and suspension of deposits on March 25th, advising clients to transfer their assets elsewhere. Despite hints from Binance about leaving the Russian market and the departure of key local executives, CommEx emphasized its operational independence while acknowledging past connections to former Binance employees.

The cryptocurrency industry in Hong Kong and globally is undergoing significant changes as exchanges navigate regulatory requirements and make crucial decisions about their presence in various markets.

This article was first published on BH NEWS.