HKVAEX, a crypto exchange reportedly linked to Binance, decided to withdraw its license application from the Securities and Futures Commission of Hong Kong (SFC) on March 28. The withdrawal comes after the SFC set a deadline of Feb. 29 for all crypto exchanges to apply for operational licenses in the region. HKVAEX, which allegedly shares technical and other resources with Binance according to Chinese state media SCMP, initially applied for the Hong Kong license on Jan. 4.
Binance denied any affiliation with HKVAEX, asserting that it is not part of the Binance group and redirecting inquiries to HKVAEX. Additionally, three other virtual asset trading platforms withdrew their operational license applications in 2024 for undisclosed reasons, including Huobi, a prominent global crypto exchange.
Members of the Crypto Twitter community, such as Wu Blockchain, speculated on various reasons for the withdrawals, including potential requests to change audit companies or provide additional information.
HKVAEX was initially confused with VAEX, another crypto exchange in Hong Kong linked to KuCoin. However, HKVAEX clarified that VAEXC is a separate applicant with no connection to them.
Meanwhile, CommEx, a Russian crypto exchange with ties to Binance, announced the suspension of its operations and halted deposits on March 25. Despite emphasizing its independence from Binance, CommEx acknowledged that some of its core members were former Binance staff.
The withdrawal of HKVAEX’s license application, along with the suspension of operations by CommEx, underscores the complex and evolving regulatory landscape facing crypto exchanges globally. These developments raise questions about regulatory compliance, corporate relationships, and the future of crypto exchanges operating in various jurisdictions.
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