Breaking: Binance’s HKVAEX Crypto Exchange Withdraws License in Hong Kong

Crypto exchange HKVAEX linked to the world’s largest crypto exchange Binance has withdrawn its virtual asset trading platform license application from Hong Kong Securities and Futures Commission (SFC). The Hong Kong securities regulator asked crypto exchanges and firms to apply for the license before the deadline of February 29.

Binance-Linked HKVAEX Withdraws License Application in Hong Kong

The crypto exchange HKVAEX which goes by its company name BX Services Ltd has withdrawn virtual asset trading platform license application. BX Services Ltd now appears under the list of companies whose license applications have been returned, refused, or withdrawn on Hong Kong’s SFC website.

The license application was withdrawn on Thursday, March 28 and the reasons behind the withdrawal are unclear. Some believe it may be due to a request to change the audit company, insufficient materials, or others. HKVAEX applied for the license on January 4.

Hong Kong sets a Feb. 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.

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Binance Relations to HKVAEX

South China Morning Post reported that Binance is behind the establishment of HKVAEX, citing anonymous industry insiders. The report suggests that Binance set up HKVAEX, which commenced operations in February 2023, to proceed with the licensing process in Hong Kong.

Despite these claims, HKVAEX has maintained its stance as an independent entity. HKVAEX in an email denied its link with Binance, saying the company is an independent virtual asset exchange in Hong Kong.

SFC Licensing Head Elizabeth Wong raised crucial questions about Binance’s potential license approval after the recent guilty plea by Binance founder Changpeng Zhao to US anti-money-laundering laws. The regulator seemed wary of the exchange’s plans to secure a license in the country.

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