On March 28, HKVAEX, a Hong Kong-based cryptocurrency exchange reportedly associated with Binance, withdrew its application for a license from the Hong Kong Securities and Futures Commission (SFC). The SFC had set a deadline of February 29 for all cryptocurrency exchanges to apply for licenses to operate in the region. HKVAEX, which shares technology and resources with Binance, had submitted its application on January 4. However, nearly three months later, the exchange decided to withdraw its application, as confirmed by the SFC website. Following this withdrawal, HKVAEX is required to cease its operations in Hong Kong by May 31.
Although HKVAEX is said to be linked to Binance, the exchange denied any association, stating, "HKVAEX is not part of Binance Group. Please contact HKVAEX." The withdrawal of the license application from HKVAEX adds to a series of similar actions taken by other virtual asset trading platforms in 2024, including Huobi, the world's leading cryptocurrency exchange, which withdrew its application for undisclosed reasons.
Speculation within the crypto community, particularly on platforms like Crypto Twitter, suggests various reasons for HKVAEX's withdrawal, including potential requests for changes in auditing companies or the need for additional information. Upon its launch, HKVAEX was initially mistaken for VAEX, another cryptocurrency exchange in Hong Kong affiliated with KuCoin. However, HKVAEX clarified that it had no connection to VAEX.
Meanwhile, CommEx, a Russian cryptocurrency exchange closely linked to Binance, announced its decision to shut down operations and cease accepting deposits. The company advised users to promptly withdraw their assets to third-party wallets. Although CommEx emphasized its operational independence from Binance, it acknowledged that some of its key members were former employees of Binance. This move follows Binance's earlier indication of exiting the Russian market in September 2023, following the departure of local executives, including Vice President of Eastern Europe Gleb Kostarev.
