Update as of March 29, 11:00 am UTC: Binance has responded to SCMP’s claim that HKVAEX is part of the Binance group, refuting the allegation.
On March 28, HKVAEX, a crypto exchange based in Hong Kong and allegedly connected to Binance, withdrew its license application from the Securities and Futures Commission of Hong Kong (SFC). The SFC had set a deadline of February 29 for all crypto exchanges to apply for operational licenses in the region. HKVAEX, which reportedly shares technical and other resources with Binance according to Chinese state media SCMP, submitted its application on January 4.
According to the SFC website, HKVAEX withdrew its license application almost three months after filing. Following the withdrawal, HKVAEX is required to cease its operations in Hong Kong by May 31.
In response to inquiries, Binance has denied any affiliation with the Hong Kong-based crypto exchange. Binance stated that three other virtual asset trading platforms, including the well-known global crypto exchange Huobi, have also withdrawn their operational license applications in 2024 for undisclosed reasons.
Wu Blockchain, a member of the Crypto Twitter community, speculated that the withdrawal may be due to various factors, such as a request to change the audit company or provide additional information.
During its launch, HKVAEX was initially mistaken for VAEX, another crypto exchange in Hong Kong associated with KuCoin. An HKVAEX representative clarified that VAEXC is a separate applicant and has no connection to HKVAEX.
In related news, CommEx, a Russian crypto exchange with strong ties to Binance, has officially announced the closure of its operations and has halted deposits as of March 25. The firm advised users to withdraw their assets immediately to third-party wallets.
Binance had previously hinted at exiting the Russian market in early September 2023, as several top local executives, including Eastern Europe Vice President Gleb Kostarev, stepped down. CommEx emphasized that it operated independently from Binance but acknowledged that some of its core members were former Binance employees.